Gold Monetisation Scheme

Gold council to aid exports on the anvil


Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy & their effects on industrial growth

From UPSC perspective, the following things are important:

Prelims level: Domestic Council for Gold, Priority sector lending

Mains level: Role of gold in India’s trade balance & government steps to reduce its imports (Sovereign Gold Bonds etc.)

Govt sets up a dedicated gold council

  1. The Centre has decided to set up a Domestic Council for Gold to aid exports of jewellery
  2. This will also help in creating an ecosystem to harness the true potential for jewellery-making in the country

Structure of the council

  1. This council will represent all the jewellers of India who will be the electoral college
  2. They will form different interest groups and elect those who will sit in the council
  3. A Coordination Committee will be set up comprising senior officials of the Ministry and the gem and jewellery industry, who will meet monthly to ensure that industry concerns are addressed on priority

Tasks of the council

The council would work towards

  • industry development
  • job creation
  • the building of regional clusters and
  • strengthening of value chains

Exports not in PSL category

  1. Exports is a priority for India but not marked for priority sector lending for the banking sector
  2. The government has asked RBI to consider bringing exports in PSL category

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