The Union Government will have to revisit its Gold Monetisation Scheme as stakeholders in the sector have expressed reservations highlighting various aspects as to why this scheme might not take off, chairman of the Parliamentary Standing Committee on Finance, Dr M. Veerappa Moily said at an ASSOCHAM event held in New Delhi today.
"There is no point in coming out with a scheme which will not take up, we will come out with a standalone report on the Gold Monetisation Scheme but with a more focus the present schemes," said Dr Moily while inaugurating the ‘8th International Gold Summit,' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Talking about goods and services tax (GST), Dr Moily said that the select committee of Rajya Sabha has examined this matter and Congress party has given a dissenting note on that.
"If the government can look into the pragmatic aspect of it, we are actually supporting it with the modification which is suggested."
"GST has to go with the direct taxes code as both together have a holistic approach for the tax reforms," he said.
He also said that there is a need to focus on or reflect upon the problems of artisans who are in this field as there is no focus on this in the scheme that has come out from the government.
"We should definitely exploit the manpower resource we have particularly in the artisan sector," said Dr Moily.
In his address at the ASSOCHAM summit, Mr France Morule, High Commissioner of South Africa in India invited Indian jewellery industry to set up manufacturing operations in South Africa and take advantages of its policies both at the domestic and overseas including special privileges it enjoys from the USA and the European Union.
"India has the ability to create capacity building programmes in South Africa to impart skills which will develop and enhance the local jewellery industry," said Mr Morule.
Mr Somasundaram P R, managing director-India, World Gold Council, while addressing the ASSOCHAM summit said that Gold Monetisation Scheme should address issues of trust through global standards and accreditation, ensure easy transactions, provide incentives to each market participant and lead to build up of adequate infrastructure over the medium term that is self-sustaining and scalable.
"This scheme should be marketed innovatively by the banks just as loan against jewellery is being marketed-the intent to make the programme successful is very important for the benefit of trade and customers," said Mr Somasundaram.
"In this regard, the Gold Monetization Scheme proposed by the Government, is a breakthrough step towards financialization of gold in the Indian economy and will not only be instrumental in transforming the Gems and Jewellery sector but will also contribute towards easing pressure on CAD and significantly improving the investment and capital formation environment for the country by boosting the saving's propensity in our country to 40% levels," said the ASSOCHAM chief.