Making the annoucement, Commerce Minister Suresh Prabhu said the government has decided to set up a domestic gold council and an integrated gold policy to address all issues in a holistic way. Various stakeholders are being consulted on formulation of the policy and setting up of the council.
The minister also said that it’s important India develops partnerships with other countries for promotion of gems and jewellery business.
It was in February earlier this year that Finance Minister Arun Jaitley had announced formulation of a comprehensive gold policy to develop gold as an asset class. The policy aims to promote gold industry in the country and exports of gems and jewellery and also generate jobs in the sector.
It was in August that NITI Aayog put forward a suggestion in front of the government to cut down gold duty from the existing level of 10 percent and also asked to cut the GST rate on the precious metal from the existing 3 percent.
In addition, it had recommended review and restructure the gold monetisation scheme, sovereign gold bond scheme besides creating a gold board and bullion exchanges across the country to have greater financialisation of the yellow metal. The report had also suggested exemption of 3 per cent Integrated Goods and Service Tax (IGST) to be paid by exporter in line with customs duty with a provision of bank guarantee.