New Delhi: The All India Jewellers and Goldsmith
Federation (AIJGF) has submitted a memorandum to Union Commerce & Industry
Minister Piyush Goyal, proposing the creation of a regulated Bullion Bank
Framework in India.
The memorandum, submitted by AIJGF National President Pankaj
Arora on 18 May 2026, stated that reducing India’s Gold Import Bill is a
national necessity, but the solution should not come through discouraging
jewellery demand. Instead, the Federation said India should focus on bringing
idle domestic gold into productive circulation.
AIJGF expressed concern that any broad appeal against gold
purchases could impact nearly 35 million people connected with the jewellery
and bullion ecosystem, including small jewellers, goldsmiths, artisans,
craftsmen, manufacturers, refiners, hallmarking centres, transporters and daily
wage workers.
The Federation proposed that household gold, temple gold,
Gold ETF holdings and institutional gold should be mobilised through a
regulated Bullion Bank Framework and channelled as domestic supply to
jewellers, manufacturers, exporters and refiners.
Pankaj Arora stated that gold in India is not merely a
luxury product but is deeply connected with culture, tradition, savings,
women’s financial security, marriage systems and the rural economy. He said
idle gold should be converted into a productive national asset.
AIJGF National General Secretary and Spokesperson Nitin
Kedia said India does not need to choose between saving foreign exchange and
protecting livelihoods. With the right policy framework, both objectives can be
achieved together.
The Federation has also suggested limited Gold ETF lending
under strict regulatory safeguards and requested the government to form a
Consultation Committee with representatives from the government, jewellery
trade, bullion market, financial institutions and regulatory bodies.
AIJGF said India should modernise its gold ecosystem by making idle gold productive, instead of weakening jewellery demand.
