“Looking into many proposals and suggestions on how to make the existing Gold Monetisation Scheme more lucrative to discourage gold imports,” the finance minister said.
She also expressed confidence over the government’s ability to tackle external economic pressures, including fuel and supply chain disruptions.
“Under the guidance of the Prime Minister, we will be able to handle all challenges on fuel, supply chains etc,” Sitharaman added.
The comments come amid growing debate over Prime Minister Narendra Modi’s appeal urging Indians to refrain from buying gold for a year in order to curb forex outflow. While the move is being viewed as an attempt to reduce import dependence, jewellery industry bodies have raised concerns over its possible impact on employment and business activity.
The All India Jewellers & Goldsmith Federation (AIJGF) warned that a prolonged decline in gold purchases could threaten the livelihoods of nearly 35 million people associated with the sector.
Industry stakeholders are now pitching the revival and strengthening of the Gold Monetisation Scheme as a middle path to reduce imports while safeguarding the interests of the gems and jewellery industry.
Launched in 2015, the scheme was aimed at mobilising idle gold held by households and institutions and reducing the country’s reliance on imported gold. However, it failed to attract large participation, collecting only around 39 tonnes of deposits compared to the estimated 34,000 tonnes of gold held by Indian households.
India’s gold imports rose 24% in FY26, costing the country nearly $72 billion in foreign exchange.
