India`s gold processing industry to create 25,000 new jobs
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The gold processing industry in India is projected to create 25,000 new jobs and witness about Rs 15,000 crore investments by 2030, a new report showed on Thursday.
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 the GDP, said the industry body PHDCCI (PHD Chamber of Commerce and Industry).
“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 Sanjeev Agrawal, President, 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, he added.
The employment creation due to this will have a positive ripple effect on the economy, improving livelihoods and creating a virtuous cycle of economic growth.
India has a large domestic demand for gold, which is 17 per cent of the total world gold demand and is largely met by imports.
“Backed by expanding domestic gold production from the current level of 16 tonnes to 100 tonnes by 2030, net imports will decrease significantly,” said Agrawal.
Adjusting the value of imported finished gold to that of imported raw gold will likely save $1.2 billion in foreign exchange reserves and improve the trade balance, according to the industry chamber.
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 per cent (average) annual growth rate.
“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 per cent currently to 0.1 per cent by 2030,” Agrawal noted.
GST paid on gold is expected to increase from Rs 300 crore to Rs 2,250 crore by 2030, whereas the duty foregone by the government is projected to rise from Rs 285 crore in 2023 to Rs 1,820 crore by 2030, reflecting the expanding scale of the domestic gold industry, the industry chamber said.
