The Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with the global management consulting firm ATKearnyhas released an yearly report highlighting the current condition of India’s jewelry trade. The document titled ‘All that glitters is gold: India Jewellery Review 2013’ also underlines the challenges faced by jewelry trade and recommends possible solutions.
The document segregates the Indian demand into two broad categories-consumption and investment. Unlike most other countries in the world, investment demand for gold in India is quite strong. It accounts for almost 45% of the total demand. Within investment demand, almost 57% comes from gold bars and coins, while the rest comes from jewelry. The recent import restrictions on gold have cooled off the demand growth, the report indicates.
FICCI and ATKearny identifies several challenges faced by the industry with regards to talent and skill development, research and technology adoption, limited infrastructure facilities and restricted financing options to name a few.
As a solution to the above challenges, the report proposes to develop adequate talent pool through modern skill development initiatives. It also recommends the industry to focus on higher recycling of gold available within the country through promotion of gold deposit schemes. In addition, the banks in the country should be permitted to buy domestic gold.
‘All that glitters is gold: India Jewellery Review 2013’ also suggests that the trade ought to focus further on quality control and initiate easy financing schemes to boost purchases.
Source:resourceinvestor
Source:Bullion Bulletin