Know What The Industry Experts Said At The 4th India International Bullion Summit (IIBS)
The 4th edition of India International Bullion Summit (IIBS – 4) organised By IBJA was held on 16th March, 2017 at Hotel Sahara Star, Mumbai.
Mr. Ashish Chauhan, MD – Bombay Stock Exchange, during the conference stated “BSE is working with IBJA, a nodal body for bullion trade to set up a Gold Spot Exchange. The Idea of Gold Spot framework in gift city was discussed which will also allow foreigners to trade gold contracts denominated in Dollars and create one more centre for price discovery”. Most of the industry leaders felt that SEBI should regulate this spot exchange. The denial by SEBI to regulate exchange will adversely affect the much-needed regulated gold market.Quotes Mr. Mohit Khamboj, Ex National President, IBJA “IBJA is taking an initiative to revamp the image of the gems and jewelry industry with the help of the government. E.g. The policies in America are made in a way that they help in the growth of the country. It is similar in China and Russia. Likewise our Honorable Prime Minister Shri Narendra Modi is taking steps which will revamp the industry, make it much more organized, healthy and will improve the countries economy.”
A Panel Discussion was held for the impact of GST on bullion and jewelry industry. Majority of the fraternity felt that the government should not exceed revenue, neutral rate while deciding the GST rate for Gems and Jewellery Sector. Many retailers also felt that a higher GST rate on Jewelry will bring down the consumer demand for Jewelry. However, bullion dealers emphasised for reduction in Custom Duty on bullion.“We have joint-ventured with Mumbai University and are introducing a precious metal and assay institute with a skill development program. We have also tied up with Bajaj Allianz for an insurance policy that will benefit the manufacturers, retailers and wholesalers in India.” Quotes Mr. Mukesh Mehta, National President, IBJA.
Questions Anil Singhvi, Markets Editor, CNBC Awaaz, to the panelist; “We get to see various gold rates on the television. As a consumer, I don’t know which jeweller or channel’s rate to follow?” He further opines that Gold rates could be standardized. Jewellers could change or add the state or local taxes above the standardized gold rates.”
Adds Mr. Sanjeev Agarwal, Chairman – Gem And Jewellery, FICCI “With the introduction of Excise, GST and pan card the times ahead may be tough for the gems and jewellery industry and consumers. However, now is the time to foresee the change and seize the opportunity. End result being, it will make this sector much more professional and stronger.”
In another panel discussion, Hallmarking of jewelry was discussed and it was confirmed by most of the jewellers that BIS has restricted hallmarking to 14, 18 and 22 carat jewelry which might in turn push customers to purchase un-hallmarked jewelry.
Quotes Rahul Mehta, Director, Silver Emporium Pvt Ltd “Hallmarking of Silver is important and should be made mandatory. Silver hallmarking was introduced in 2005. However most consumers are unaware about it. The silver market has grown almost 30% year on year in the past 10 years. IBJA should spread awareness in the consumers by organising educational programs under the World Gold Council.”
In a panel discussion on the changing phase of marketing of jewellery, adds Chirag Thakkar, Amrapali Industries Ltd on “ In United Kingdom, labor or making charges are known as Fashion charges. In India, a similar terminology could be used instead of the term – Labor which retains the respect of an art.”
Among various launches at the summit, IBJA Times magazine was launched which will keep the industry personals abreast with the market trends.