In times of stability, investors look for safer avenues to keep their resources, i.e., money in. At a time when equity markets trade with deep cuts and the Indian Rupee dwindles, slipping to new lows, gold has become an interesting and promising avenue for many around the globe.

This is not just true for individuals and investors, but also for central banks around the globe. As a result of this, gold prices have risen significantly in the recent past, touching Rs 80,000 for 10 grams in some markets.

Given the situation, what is Gold Industry looking at, this budget season?

The country's FM Nirmala Sitharaman is all set to present her record 8th budget on Saturday, February 1, 2025.

'Optimistic About Budget'

Looking at the upcoming budget, Aksha Kamboj, Executive Chairperson, Aspect Global Ventures and vice president of India Bullion & Jewellers Association (IBJA) said "As the gold sector continues to play a vital role in India’s economy and cultural heritage, we are optimistic about the upcoming Union Budget."

Image used for representation

Gold Monetization Scheme

Kamboj underscored the need for competitiveness and said, "Our key expectation is for policies that foster growth and formalisation in the industry, such as a reduction in import duties, which will enhance competitiveness and curb illegal imports."

"We also look forward to measures that support gold monetization schemes, enabling consumers to unlock the value of their idle gold holdings. Furthermore, addressing barriers to trading in electronic gold receipts is another critical area that requires attention and decisive attention."

The price of gold has risen significantly in recent past, the current price stands at Rs 80,105.00 in Mumbai.

GST In Focus

"She further adds, "Another facet of prime attention is streamlining GST compliance and providing clarity on hallmarking norms that can significantly strengthen the sector's efficiency and trustworthiness."

With the gold industry being a cornerstone of rural savings and employment, especially for small and medium enterprises, we urge the government to adopt fiscal policies that align with the sector’s long-term sustainability and its continuous contribution to the Indian economy.

Introducing initiatives like setting up a jewellery export center in Gujarat International Finance Tec-City (GIFT City) and developing small jewelry parks in Tier 2 cities can also help in boosting exports and generate employment within the sector."

The Union Budget of 2025 for FY26 is coming at an interesting time, as the nation is in the middle of an economic slowdown and a rise in its inflation rate, amid leak at the equity markets.