PR No – 112
11th July, 2024
New Delhi
India’s gold processing industry will create 25,000 new jobs and Rs 15000 crore investments by 2030: PHDCCI
Domestic gold production of incumbents and new players will expand to 100 tonnes by 2030 adding significantly to the foreign exchange reserves, improving trade balance and contributing to GDP, said the Industry body PHDCCI
Indian gold processing and manufacturing industry is poised for substantial growth and transformation, promising extensive economic benefits, supporting the Indian economy on a higher growth path to “Viksit Bharat by 2047”, said Shri Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry in a press statement issued here today.
According to a study on ‘Framework to Strengthen India’s Gold Processing Industry: A Step in Building Gold Self-Reliance’ conducted by PHD Research Bureau, PHDCCI, India’s gold processing and manufacturing industry is set to see substantial investments, rising from Rs 1,000 crore in 2023 to Rs 15,000 crore by 2030, said Mr Agrawal.
This increased investments will enhance employment from the current level of 3,000 to 25,000 workers, he said
This employment creation will have a positive ripple effect on the economy, improving livelihoods and creating a virtuous cycle of economic growth, said Shri Sanjeev Agrawal.
The recent efforts of the gold processing and manufacturing industry have made steady strides for futuristic production possibilities, leading to meet a large chunk of gold demand by 2047, he said.
India has a large domestic demand for gold, which is 17% of the total World gold demand and is largely met by imports, said Mr. Agrawal.
Backed by expanding domestic gold production from the current level of 16 tonnes to 100 tonnes by 2030, net imports will decrease significantly, said Shri Sanjeev Agrawal.
By adjusting the value of imported finished gold to that of imported raw gold, this will save USD 1.2 billion in foreign exchange reserves and improve the trade balance, said Mr Agrawal.
Total gold supply is expected to increase from the current level of 857 tonnes to 1,000 tonnes by 2030, driven by a 2.4% (average) annual growth rate, said Shri Sanjeev Agrawal.
This thrust in domestic gold will enhance economic self-sufficiency and contribute to the GDP, with the share of gold production in GDP increasing from 0.04% currently to 0.1% by 2030, he said.
This influx of capital will drive technological advancements, facilitate infrastructure development within the sector, reduce the cost of processing gold and stimulate global expertise and partnerships, fostering innovation and best practices within the industry, said Shri Sanjeev Agrawal.
We appreciate that currently the government provides a zero-rated duty on the import of Gold ore concentrates (HSN-26169010) which has been a pivotal factor in attracting investments and technical expertise, he said.
We expect that the GST revenues will surpass the duty foregone, indicating that even if the government maintains the current duty exemption rate, it will still collect substantial GST revenues, said Shri Sanjeev Agrawal.
GST paid on gold is expected to increase from Rs 300 crore to Rs 2250 crore by 2030, whereas the duty foregone by the government is projected to rise from Rs 285 crore in 2023 to Rs 1820 crore by 2030, reflecting the expanding scale of the domestic gold industry, said Mr Agrawal.
Overall, the Indian gold processing and manufacturing industry’s future looks promising, with widespread positive impact on employment, investment, trade balance, and government revenues, said Shri Agarwal.
*END*
Warm Regards,
Media Division
PHD Chamber of Commerce and Industry