Page 7 - Bullion World Issue 11 Volume 05 November 2025

Bullion World | Volume 5 | Issue 11 | November 2025

By comparison, China has institutionalized its
approach. The People’s Bank of China holds roughly
2,300 tonnes of gold compared to India’s 880 tonnes,
backed by an explicit (albeit undisclosed) policy.
Chinese banks actively participate across the gold
EDITORIAL value chain, and the nation’s domestic production
and refining capacities far surpass India’s.

Ultimately, SBI contends that India must frame a
Dear Readers, holistic gold policy that acknowledges its economic,
cultural, and strategic importance. Doing so will help
Time for India to Redefine Its Relationship with Gold align gold’s traditional appeal with the nation’s modern
financial ambitions-turning what was once a passive
The State Bank of India (SBI) has called for a store of value into a dynamic instrument of growth.
comprehensive, long-term policy on gold-one that
clearly defines whether gold should be treated as In a significant policy update, the Directorate General
a commodity or as money, and how it is perceived of Foreign Trade (DGFT) announced that gold tariff
by Indian consumers. Authored by Dr. Soumya Kanti rate quota (TRQ) allocations under the India-UAE
Ghosh, Group Chief Economic Advisor at SBI, the Comprehensive Economic Partnership Agreement
report emphasizes that India’s cultural attachment (CEPA) will now be conducted through a competitive
to gold, coupled with its role as both an investment bidding or tender process, replacing the earlier
asset and a hedge against inflation, makes it allocation mechanism to enhance transparency and
imperative to reimagine its place in the national fairness.
economy.
While finer details of the auction mechanism are
The report highlights a fundamental divergence awaited, the government’s policy shift clearly
in the global perception of gold. In the West, gold signals a decisive move toward greater transparency
is viewed as public property, shaped by centuries and inclusivity in the gold import framework. By
of wars and economic upheavals. In contrast, adopting a competitive bidding process, the intent
across much of Asia-particularly in India, Japan, appears to be ensuring that the concessional
Korea, and China-gold remains private property, duty benefits are equitably passed on to genuine
deeply embedded in cultural traditions and seen jewellery manufacturers and exporters engaged
as a symbol of personal wealth and security. in value addition. This approach not only widens
access across the manufacturing spectrum but also it
SBI underscores that India’s current policy reflects a commitment to foster a more accountable
framework remains narrow in focus, primarily and industry-oriented gold import regime that
aimed at curbing physical demand, recycling supports both compliance and competitiveness.
domestic stocks, and maintaining exchange rate
stability. Since independence, India’s gold policy has
revolved around short-term measures-discouraging Best wishes,
investment in gold, regulating supply, and controlling G Srivatsava
smuggling-without a unified long-term vision. Editor

We would be happy to receive your comments and feedback on the content of this edition,
please write to editor@bullionworld.in

7