India's gold industry, backed by the World Gold Council (WGC), has launched a self-regulatory body aimed at bolstering consumer confidence and rebuilding trust, according to a Tuesday announcement by the WGC. The Indian Association for Gold Excellence and Standards (IAGES), newly established, seeks to foster equitable, clear, and sustainable operations within the gold sector, including adherence to regulations, a set of ethical guidelines, and a rigorous auditing system, explained Sachin Jain, CEO of WGC's Indian division. India ranks as the globe's second-largest gold market after China, yet faces a credibility gap with both consumers and authorities due to misconduct by a minority within the trade, Jain noted.
The core objective of this new association is to grant certification following a stringent audit process. Post-audit, members will be authorized to use the IAGES emblem, Jain informed Reuters, without divulging specifics about the auditing protocol. Key industry groups like 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 IAGES, Jain disclosed. The WGC plans to actively promote IAGES to retail customers and will fund this promotional effort, he further added.
India's gold consumption dipped by 5% in the second quarter compared to the previous year, but is anticipated to rebound in the latter half of 2024 following a significant drop in import duties and subsequent adjustments in domestic prices, as per the WGC's recent report.
