PM Modi's Appeal On Gold Could Hit 1 Crore Jobs: Jewellery Council

(MENAFN- AsiaNet News)

Prime Minister Narendra Modi's appeal to reduce buying gold jewellery could impact employment linked to the jewellery industry, which supports more than one crore people directly and several allied sectors indirectly, highlighted Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council.

Speaking to ANI, Rokde reacted to Prime Minister Narendra Modi's recent appeal asking people to reduce fuel consumption, avoid unnecessary foreign travel and stop buying gold for one year amid the ongoing West Asia crisis and rising crude oil prices.

Jewellery Industry Flags Employment Concerns

"Whatever Prime Minister has to say is absolutely correct in patriotism and national interest," Rokde said. He noted that the Prime Minister has consistently spoken about "self-reliant India" and "Viksit Bharat 2047", and said the appeal was made keeping national economic interests in mind.

However, Rokde said gold jewellery has deep cultural significance in India and any broad reduction on jewellery purchases could affect economic activity and employment. "The Prime Minister might be saying that those who buy unnecessary gold, those who buy gold for investment purposes should be discontinued. I definitely agree with that thing," he said.

According to Rokde, the jewellery industry contributes around 7 per cent to India's GDP and supports a large employment ecosystem. "Today, more than one crore people work directly in the showrooms through employment through artists through their employment," he said.

He added that several sectors including insurance, banking, furniture, packaging and logistics are also dependent on the jewellery industry. "Giving any kind of restriction on jewellery can raise a big question of big unemployment," Rokde stated.

Proposed Solutions and Monetisation

At the same time, he supported discouraging the bullion and coin purchases for investment purposes. "I consider it absolutely right to stop buying bullion, buying coins," he said.

Rokde also said the All India Gem and Jewellery Domestic Council has already submitted a Gold Monetisation Scheme proposal to the government. According to him, Indians are estimated to hold around 40,000 to 50,000 tonnes of gold across the country.

He said if even 10 to 20 per cent of this gold is monetised, it could significantly reduce dependence on gold imports. "We have submitted this end-to-end solution of monetization to the government," Rokde said, adding that if implemented effectively, India may not need to import gold for the next 10 years.

Market Reacts to PM's Appeal

Prime Minister Narendra Modi on Sunday urged citizens to avoid buying gold for a year, reduce fuel consumption and conserve foreign exchange amid rising geopolitical tensions in West Asia. Addressing an event in Hyderabad, the Prime Minister also called for reviving work-from-home practices.

The remarks came as global crude oil prices surged nearly 4 per cent on Monday to around USD 105 per barrel amid escalating tensions in West Asia and disruptions around the Strait of Hormuz.

Following the remarks and rising geopolitical concerns, major jewellery stocks on the National Stock Exchange came under pressure on Monday. Shares of major jeweller companies faced pressure on Monday, with PNG Jewellers declined around 8 per cent, while Kalyan Jewellers fell 8 per cent. Thangamayil Jewellery shares declined around 4 per cent, while Titan Company stock dropped more than 6 per cent. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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