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According to the World Gold Council (WGC), India needs to do more to use gold economically, according to the Times of India. Although there is a lot of gold in India, the precious metal does not provide enough employment and trade, according to the WGC. There are an estimated 22,000 tonnes of private gold in the hands of the Indian people and in Indian temples, precious metals that are mainly kept in the form of jewellery.
"Our vision is that gold will be used for economic purposes, to create jobs, to develop skills and to generate exports and revenues", the WGC stated during the second India International Bullion Summit in Mumbai, India.
"As a country, we need to focus on measures that unleash the potential of all the gold lying in millions of households, with the aim of boosting the national economy. To do this, we need to find ways to mobilize that gold and to monetize the gold in investment products", said Som Somasundaram of the Indian branch of the World Gold Council.
"Our vision for 2020 for India's gold sector is to transform the country into the jeweller of the world, by quintupling gold jewellery exports and doubling employment in this sector", Somasundaram added. According to him, the export of gold must increase from $8 billion to $40 billion within five years. This could create up to 5 million new jobs across the gold sector.
"40% of the demand for gold must be met by gold already present in India and 60% by imports and mining production. A lot of domestic gold has to be made available with gold accounts", as the World Gold Council made clear in its vision for 2020. According to the WGC, in order to sell gold jewellery to an international audience, investments must also be made in 'gold tourism', for example with exhibitions and hallmarks for jewellery that are above a certain price level.
World Gold Council wants to mobilize more gold in India
