In the backdrop of gold surging over 30% in the last one year, the Centre was recently asked about measures, if any, taken to regulate prices of the precious metal. Over the past one year, the price of 24-karat gold rose from Rs 58,500 to Rs 78,770 per 10 grams.
The issue of rising gold prices was brought up in the Lok Sabha, where questions were raised about the government’s measures to address this issue.
In a written reply, Minister of State for Finance Pankaj Chaudhary stated, “The government had reduced the customs duty on gold imports from 15% to 6% in the Union Budget 2024-25.” This step was aimed at enhancing domestic value addition in gold and jewelry and making gold more affordable for consumers.
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Addressing concerns about the Reserve Bank of India (RBI) purchasing gold despite rising prices, the minister explained, “Gold is a part of the foreign exchange reserves. RBI’s purchases of gold are mostly in international markets and have no significant bearing on the domestic market.” He added that the share of gold in foreign exchange reserves had risen from 7.81% in March 2023 to 8.15% in March 2024, primarily due to valuation changes and acquisitions.
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Government highlights measures
To ensure transparency in gold pricing, the government highlighted measures such as hallmarking to maintain the purity of jewelry. “The Bureau of Indian Standards ensures purity of hallmarked jewelry, which helps in maintaining transparency and consumer trust,” Chaudhary noted. He also emphasized the role of the Competition Commission of India (CCI) in preventing cartelization and addressing complaints under the Competition Act, 2002.
On promoting alternative investments, the minister said,
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