The ongoing debt crisis in Dubai offered a great opportunity for India to become the global gold trading hub, said Vinod Hayagriv, chairman, All India Gem & Jewellery Trade Federation.
“The government must take some quick decisions, already being pursued by the federation, to seize the opportunity thrown open by the Dubai debt crisis,” he said.
Currently, Dubai is the world’s trading hub for bullion as it offers a host of financial and fiscal sops for the industry, besides having a developed bullion refining industry.
Proposing an action plan, Hayagriv said, “The government must do away with import duty on gold, allow gold imports under open general licence, and allow duty-free imports of scrap gold, which can help the country gain attention of the world as trading hub for the yellow metal.”
With the recent Asean free trade agreement, import of gold will become duty-free from 2012, and then India and China are the only two member countries which can invite the world’s attention as gold trading centre.
“But why wait till 2012 to face competition from China? Decontrol gold imports and I am sure the (gold trading) hub will shift to India from Dubai,” Hayagriv said.
Hayagriv has had a few meetings with the Department of Industrial Policy and Promotions to pursue the federation’s demands.
The government has given an in principal approval to the federation as a representative body for the gold and jewellery industry in the country.
