India's Gold Monetisation Scheme Boosts Economic Growth, Contributes 7.5% To GDP

New Delhi: India's Gold Monetisation Scheme (GMS), initiated by the central government, has transformed gold into a valuable economic asset, driving growth and development. The scheme, which aimed at mobilising the country's vast gold reserves, is estimated to be over 25,000 tons, and converting them into a productive asset. Experts stated that the success of the GMS is evident in the growth of India's jewellery and gems sector. The country has emerged as one of the world's leading exporters of gems and jewellery, with exports valued at over USD 40 billion in 2022. 

Surprisingly, India's jewellery and gems sector contributes 7.5 percent to the country's GDP. Further with rising gold prices, the sector is expected to reach 8.5 percent contribution to the GDP. The experts believe that the GMS has been instrumental in contributing to India's economic growth, particularly in the jewellery and gems sector. They asserted that the importance of the GMS is in boosting the sector's growth, by providing a steady supply of gold, further contributing to the sector's overall growth and helping to establish India as a major player in the global gems and jewellery market.

The government's scheme allows people, institutions, and temples to deposit their gold holdings with banks and earn interest on them. The deposited gold is then melted and minted into gold bars, which are sold to jewellers and other industries. The scheme, not only provides a source of income for the depositors but also increases the availability of gold for industrial use.

In order to discuss the issues and further expand the value of the sector, the Delhi Jewellery & Gem Fair (DJGF) Signature 2025 is being organised at Delhi's Bharat Mandapam in Pragati Maidan, showcasing the sector's growth and potential. The expo provides a vital platform for exhibitors to unveil their latest designs, bringing together leading jewellers, manufacturers, and exporters from across the country.

The event has brought together over 120 premium exhibitors and is expected to attract more than 8,000 trade visitors.

"India's gem and jewellery sector is projected to reach a valuation of $225-245 billion by FY35," said Yogesh Mudras, Managing Director, Informa Markets in India. He further added, "The digital transformation in jewellery retail is expected to grow at a CAGR of over 15%, broadening market access and enhancing brand loyalty."

The gems and jewellery industry is a wealth-building asset, aligning with PM Narendra Modi's vision of Viksit Bharat.