The All India Jewellers and Goldsmith Federation (AIJGF) has submitted a memorandum to Union Commerce & Industry Minister Piyush Goyal, proposing the creation of a regulated Bullion Bank Framework in India. The Federation stated that such a framework could help reduce the country’s Gold Import Bill, mobilise idle gold into productive circulation, and protect the livelihoods of nearly 35 million people associated with the jewellery and bullion ecosystem.
Quick Summary
- AIJGF submitted a memorandum to Commerce Minister Piyush Goyal on 18th May 2026.
- The Federation raised concerns regarding the livelihoods of nearly 35 million people linked to the jewellery and bullion sector.
- AIJGF stated that reducing the Gold Import Bill should not come through suppressing jewellery demand.
- The Federation proposed the establishment of a regulated Bullion Bank Framework in India.
- AIJGF suggested mobilising household gold, temple gold, Gold ETFs, and institutional gold into productive circulation.
- The memorandum also recommended allowing limited gold lending by Gold ETFs under regulatory safeguards.
- AIJGF requested the formation of a consultation committee involving industry stakeholders and policymakers.
Memorandum Submitted to Commerce Minister
The All India Jewellers and Goldsmith Federation (AIJGF), through its National President Pankaj Arora, today submitted an important memorandum to Hon’ble Union Minister of Commerce & Industry Piyush Goyal on 18th May 2026.
Concern Over Livelihoods of 35 Million People
In the memorandum, AIJGF expressed serious concern regarding the livelihoods of nearly 35 million Indians and their families associated with the jewellery and bullion ecosystem across the country. The Federation stated that any broad appeal discouraging gold purchases could directly impact millions of small jewellers, goldsmiths, artisans, craftsmen, manufacturers, refiners, hallmarking centres, transporters, and daily wage workers dependent on the sector.
AIJGF’s Position on Reducing the Gold Import Bill
AIJGF clearly stated that while reducing India’s Gold Import Bill is a national necessity, the solution does not lie in suppressing jewellery demand, but in bringing the country’s idle gold into the productive economy.
Proposal for a Bullion Bank Framework
The Federation urged the Hon’ble Minister to establish a strong and regulated Bullion Bank Framework in India, through which household gold, temple gold, Gold ETF holdings, and institutional gold can be mobilised and channelled as productive supply to jewellers, manufacturers, exporters, and refiners.
Gold as a Cultural and Financial Asset
AIJGF National President Pankaj Arora stated that gold in India is not merely a luxury product, but is deeply connected with culture, tradition, savings, women’s financial security, marriage systems, and the rural economy. Therefore, gold demand should not be viewed solely as an import burden. Instead, India should focus on converting its idle gold into a productive national asset.
Policy Framework for Balancing Economic Objectives
AIJGF National General Secretary and Spokesperson Nitin Kedia stated that India does not need to choose between saving foreign exchange and protecting livelihoods. With the right policy framework, both objectives can be achieved simultaneously. Rather than demand suppression, a structural solution such as a Bullion Bank could provide a more sustainable and long-term path for the country.
Suggestion on Gold ETF Lending
In its memorandum, AIJGF also suggested that Gold ETFs should be permitted, under strict regulatory safeguards, to lend a limited portion of their physical gold holdings to the proposed Bullion Bank. This could help create a domestic gold lending pool, provide local gold supply to jewellers, reduce fresh imports, and potentially generate additional yield for ETF investors.
Request for a Consultation Committee
AIJGF further requested the government to constitute a Consultation Committee on this issue, comprising representatives from the government, jewellery industry, bullion market, financial institutions, and regulatory bodies. The Federation also suggested that such a committee could be formed under the leadership of Member of Parliament Praveen Khandelwal to facilitate discussions among all stakeholders and arrive at a practical and nation-oriented solution. Union Commerce and Industry Minister Piyush Goyal has heard to consider setting up a consultation committee to examine the proposed Bullion Bank framework. If constituted, the committee is expected to include representatives from the government, jewellery industry, bullion market, financial institutions, and regulatory bodies. Further meetings with the minister are also likely to take place in the coming days to discuss and strengthen the proposal.
Key Demands Raised by AIJGF in the Memorandum
- Establish a regulated Bullion Bank Framework in India.
- Mobilise idle gold available within the country into productive circulation.
- Formulate policies in consultation with jewellers to reduce the Gold Import Bill.
- Permit limited gold lending by Gold ETFs under regulatory safeguards.
- Protect the livelihoods of small jewellers, goldsmiths, artisans, and craftsmen.
- Prevent negative market sentiment that could harm the jewellery sector.
- Create a structured consultation mechanism between the government and trade bodies.
AIJGF’s Closing Statement
AIJGF stated that India should not weaken its jewellery ecosystem, but instead modernise and make its gold ecosystem more productive.
Issued By
All India Jewellers and Goldsmith Federation
Pankaj Arora
National President, AIJGF
Nitin Kedia
National General Secretary & Spokesperson, AIJGF
FAQ
What is the Bullion Bank Framework proposed by AIJGF?
AIJGF has proposed a regulated Bullion Bank Framework that would mobilise idle gold available in households, temples, Gold ETFs, and institutions, and channel it into productive use for jewellers, refiners, exporters, and manufacturers.
Why did AIJGF submit the memorandum to the Commerce Minister?
AIJGF submitted the memorandum to raise concerns over the livelihoods of nearly 35 million people associated with India’s jewellery and bullion ecosystem and to suggest policy solutions for reducing the Gold Import Bill.
How can a Bullion Bank help reduce India’s Gold Import Bill?
A Bullion Bank could help create a domestic gold lending pool using idle gold already available within the country, thereby reducing dependence on fresh gold imports.
What concerns did AIJGF raise regarding discouraging gold purchases?
The Federation stated that discouraging gold purchases could negatively impact millions of jewellers, artisans, goldsmiths, refiners, transporters, and daily wage workers dependent on the jewellery sector.
What role could Gold ETFs play in the proposed framework?
AIJGF suggested that Gold ETFs could be allowed, under regulatory safeguards, to lend a limited portion of their physical gold holdings to the proposed Bullion Bank to support domestic gold supply.
Who did AIJGF suggest should lead the consultation committee?
AIJGF suggested that the consultation committee could be formed under the leadership of Member of Parliament Praveen Khandelwal to facilitate discussions among stakeholders.
Source: SVAR Media Network
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