4 min readSuratUpdated: May 12, 2026 06:06 AM IST
The gems and jewellery bodies plan to make representations to Prime Minister Narendra Modi seeking implementation of the Gold Monetisation Scheme after his Sunday appeal to people not to buy gold for a year, in a bid to strengthen the Indian economy.
The Gold Monetisation Scheme (GMS) allows individuals, trusts, and institutions to deposit idle gold with banks and earn interest, with both interest and capital gains fully tax-exempt.
President of Indian Bullion and Jewellers Association, Gujarat, Nainesh Pachhigar said the GMS can be implemented with the cooperation of jewellery manufacturers and showroom owners.
“We will make suggestions to the PMO in coming days and appeal to PM Narendra Modi on the issue. The restrictions should be on bullion imports as over 1.50 lakhs to 2 lakhs workers in the jewellery sector will be affected (if people stop buying gold). The exports will also go down,” Pachhigar said.
“The long-term and effective solution in the interest of the country is to bring into effect the gold monetisation scheme. The entire Gems and Jewellery industry is ready to support the scheme (GMS), with the help of the Government of India,” he said.
He said the imports of gold will significantly go down if the scheme is implemented systematically. “This will also help in saving of foreign exchange, as well as, it would help gold jewellery manufacturers and showroom owners, as well as jewellery workers, who will get continuous and stable work,” Pachhigar added.
The Prime Minister’s remarks come at a time when India’s gold import bill has surged to record levels due to soaring prices. India imported gold bars worth $16.5 billion from the UAE and $58.9 billion from the rest of the world last year.
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According to Pachhigar, the country had a large domestic gold reserve which if properly monetised and brought into circulation could prove to be a “game changer”.
“It will not only reduce imports, but also strengthen employment and economic flows. Gold in India is not just a consumer good — it is an important means of savings, security, culture, women empowerment and employment for the people. Gold has a direct and close connection with the economic system of crores of families. With coordinated efforts between the government and industry, this scheme can create a strong and self-reliant economic model for the country,” Surat-based Pachhigar said.
Gems and Jewellery Export Promotion Council Chairman (GJEPC) Kirit Bhansali said the industry fully understands the reason and respects the appeal made by PM Modi in view of the current global situation and the larger national interest.
“As responsible stakeholders, we stand with the nation during challenging times. Our sector is one of India’s largest employment generators, supporting the livelihoods of nearly 5 million workers, artisans, and small businesses across the country, and the industry will continue to work responsibly while safeguarding these livelihoods,” he said.
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“We are consulting with industry stakeholders and will collectively work towards finding balanced and practical solutions for the way forward, while continuing to support the national interest,” adds Bhansali. Batting for GMS, All India Gems and jewellery Domestic Council vice chairman Avinash Gupta said gold has always been emotionally and culturally connected to Indian households.
“Today, the nation also faces the challenge of balancing gold demand with economic stability. Respecting the PM’s vision for national interest, the industry believes that a robust, regulated Gold Monetisation Scheme can be a long-term solution for India. The answer lies not only in consuming less gold, but in utilising existing gold more efficiently, transparently and productively,” Gupta explained.
Gujarat chairman of Gems and Jewellery Export Promotion Council Jayenti Savaliya of Surat, said the extent of the impact of the PM’s appeal will be known only in the next few months. “Gold stands in the second position of commodities imported to India, after crude. With the prices of gold increasing day by day, customers who were earlier purchasing gold ornaments of 24 carats are now buying 14 carats. The impact of the PM’s appeal will be known in the next few months.”
