India likely to lose $5.5 billion in Gold medallion, coin exports
NEW DELHI (Scrap Register): Due to the government's decision to ban shipment of Gold beyond 22 carat of purity, India is likely set to lose around $5.5 billion worth of Gold medallion and coin exports. Since Gold medallions and coins contain 24 carats of Gold, their export has been banned.
In August 2017, based on the recommendations of apex industry body Gems and Jewellery Export Promotion Council (GJEPC) and under the aegis of the Union Ministry of Commerce and Industry, the government banned the export of Gold items above 22 carats of purity.
The move was aimed at restricting the round-tripping of Gold. The government opted to follow a broader benchmark of Gold content with 14 carats, 18 carats and 22 carats in jewellery as fixed by the Bureau of Indian Standard (BIS) for domestic sales.
Since Gold medallions and coins contain 24 carats of the yellow metal, their export does not fit under BIS regulations. As a consequence, their exports started to steadily decline with new orders moving to competitors such as Dubai, Turkey and China. Thus, India's exports of Gold medallions and coins declined to "nil" in June 2018, compared to $0.5 billion in the same month last year.