India launches self-regulatory body for gold industry

India’s gold industry, the world’s second-largest consumer after China, has taken a significant step to bolster consumer confidence by establishing a self-regulatory organisation.

Backed by the World Gold Council (WGC), the Indian Association for Gold Excellence and Standards (IAGES) aims to instil trust in the sector by promoting fair, transparent, and sustainable practices.

“The purpose of this association is to provide accreditation based on a very strict audit. After the audit, the member will earn the IAGES logo, which they can display,” Sachin Jain, CEO of WGC’s Indian operations told Reuters.

Key industry bodies, including the Indian Bullion and Jewellers Association (IBJA), All India Gems and Jewellery Council of India (GJC), and Gem and Jewellery Export Promotion Council (GJEPC), will be integral to the IAGES.

The WGC has pledged to support the initiative by popularising IAGES among retail consumers and funding the campaign.

India’s gold demand in the June quarter dropped by 5 per cent compared to last year.

However, consumption is expected to increase in the second half of 2024 due to lower local prices resulting from reduced import taxes, as reported by the WGC recently.