Tag: #India

India’s Foreign Direct Investment(FDI) to be accumulated to whopping $100 billion by the end of this fiscal year.

India is on track to attract $100 billion in foreign direct investment (FDI) in the current fiscal on account of economic reforms and ease of doing business, the government said on September 24, 2022.

In 2021-22, the country received the “highest ever” foreign inflows of $83.6 billion.

“This FDI has come from 101 countries, and invested across 31 union territories and states and 57 sectors in the country. On the back of economic reforms and Ease of Doing Business in recent years, India is on track to attract $100 billion FDI in the current FY (financial year),” the commerce and industry ministry said in a statement.

The statement also mentions that the government has installed a liberal and transparent policy to attract foreign investment. Currently, most sectors of the Indian economy are open to FDI under an automatic route.

The Foreign Direct Investment (FDI) in India can be made under two routes- automatic and government routes. Under the automatic route, the investor requires no or very less permissions from the Reserve Bank of India (RBI) or from the Government of India to invest.

Under the government rules, permissions from the appropriate authorities of the government or the RBI are required to invest in the country.

The reform measures include liberalization of guidelines and regulations, in order to reduce unnecessary compliance burdens, bring down costs and enhance the ease of doing business in India, the statement added.

Make in India initiative is an open invitation to potential investors and partners across the globe to participate in the growth story of ‘New India’. Make In India has substantial accomplishments across 27 sectors. These include strategic sectors of manufacturing and services as well. Production Linked Incentive (PLI) scheme across 14 key manufacturing sectors, was launched in 2020-21 as a big boost to Make in India initiative.

How UPI is a financial revolution.

United Payment Interface (UPI), a term unheard or unbelieved until April 2016, but in Modern India, UPI is the flag-bearer of the ongoing Financial Revolution.

From a tea vendor selling a Rs 10 Cutting Chai to a showroom with a pricey product range, a large section of our society has adapted to UPI. It actively utilises the mechanism for seamless payments. In the early stages, a year after the launch of UPI, the total number of payments was 6% compared to 36% of Card payments. However, in FY 2021, UPI’s share expanded to 63%, while the percentage of Card payments shrunk to 9%. The progressive advancement of UPI has not just constructed an efficient payment instrument, but it has connected millions on an inclusive and well-structured Digital platform.

It must be noted that the underlying infrastructure of Immediate Payment Service (IMPS) has been paramount for UPI’s grand success. Adopting a UPI ID rather than entering bank account numbers and IFSC codes has made transactions effortless. Integration with Bharat Bill Payment System (BBPS) for recurring Bill Payments has been crucial in creating an innovative platform.

The Indian real-time payments market is well developed when directly compared with other markets like the US, the UK, Canada and Australia, according to a report published by ACI Worldwide. The report also forecast that the share of all transactions occurring via real time instrument was expected to increase to 70.7 per cent in 2026 from the present 31.3 per cent. The report predicted that in 2026, business and consumer level benefits due to India’s real time instant payment was expected to reach $92.4 billion, adding, that it will have an impact of $54.9 billion or 1.12 per cent in India’s GDP.

Reducing India’s Forex reserves.

India’s forex reserves are at an alarmingly low stage and have dropped with the aid of 23 months of use. For the week ending September , India’s overseas foreign exchange (forex) reserves fell to $553. The lowest level in over a year, consistent with figures from the Reserve Bank of India (RBI).

The Reserve Bank of India saved its currency and intervened to save the rupee from falling beyond eighty to the greenback at some point every week whilst the greenback surged to over-decade highs, inflicting India’s forex reserves to plummet to their lowest stage in more than a decade and staining the third consecutive week of decline.

The rupee has fallen from around seventy-four to close to eighty against the greenback, a trend that experts say the RBI has maintained vehemently, echoing a drop in FX reserves of slightly more than sixty-seven billion since the Ukraine disaster and more than eighty billion from all-time highs last year. The effect of the appreciation or depreciation of non-greenback currencies like the Euro, British Pound Sterling, and Japanese Yen held in forex reserves is blanketed within the overseas forex belongings expressed in US dollars.

Experts say that the forex reserves have witnessed a fall as a result of the Reserve Bank of India’s (RBI) intervention to rein the currency volatility. In 2022, the rupee has declined by about 7 per cent, which has also made imports costlier.  Even though India’s forex reserves have seen a decline in the past few months, experts say the situation is not at all alarming. Experts say the country has a significant amount of forex reserves.

Role of ‘MSME’ sector in Indian Economy.

MSME has introduced in the year 2006 in India. There are still some service sector that was not yet included in this sector was included in the definition of the Micro, Small and Medium-sized Enterprises making a historic change to this Act. 

The MSME sector in India gave a major boost to the economy. Over 63 million MSMEs spread across the country contributed 30.5% to India’s GDP in FY19 and 30% in FY20. It also created many employment opportunities. Based on a study conducted by the Ministry of Statistics & PI between July 2015 and June 2016, the MSME sector employed 111 million workers. Compared with large-scale companies, MSMEs aided in the industrialisation of rural areas at minimal capital cost. The sector has made significant contributions to the country’s socio-economic growth and complemented major industries as well. MSMEs account for approximately 40% of India’s total exports, 6.11% of GDP from the manufacturing sector and 24.63% of GDP from the services sector.

The significance of the MSMEs sector can be noted from the fact that it is the second-largest employment provider, after agriculture in India. This sector has proven the instrumental in the growth of the nation, leverage exports, creating huge employment opportunities for the unskilled, fresh graduates, and the underemployed. It also extended the opportunities to banks for giving more credit to enterprises to MSME Sector. The government should take the special care by addressing the importance of MSME in terms of providing more and more MSME Registration advantages by implementing better regulations and enable financial institutions to lend more credit at less interest rate for sustainability of this sector.

To ensure that MSMEs continue to lead the country towards economic growth, the Government of India has from time to time announced various schemes to support the development of this sector. Recently, in view of the economic hardship caused by covid 19, the government has announced few schemes under ‘Aatmanirbhar Bharat’ i.e. Self-reliant India initiative. Accordingly, the criterion for classifying MSME has also been revised. Under the revised criterion, the combined factors of ‘Investment in plant and machinery’ and ‘Turnover’ are required to be considered to determine whether a business should be classified as a micro, small or a medium enterprise. In contrast, earlier the classification of an MSME unit was based only its investment in plant and machinery; and also depending on whether the enterprise was in the manufacturing sector or in the services sector.

First step by India to become a major semi-conductor manufacturing hub, Vedanta-Foxconn project .

Semiconductors are materials that have electrical conductivity between conductors generally metals and non-conductors or insulators. Due to their role in the fabrication of electronic devices, semiconductors are an important part of our lives. Anything that’s computerized or uses radio waves depends on semiconductors. Semiconductors are an essential component of electronic devices, enabling advances in communications, computing, healthcare, military systems, transportation, clean energy, and countless other applications.

The country responsible for the most semiconductors in the world is China, Taiwan, South Korea, and Japan. The Indian semiconductor market was valued at USD 27.2 billion in 2021 and is expected to grow at a healthy CAGR of nearly 19 percent to reach $64 billion in 2026. But none of these chips is manufactured in India so far.

A joint venture of the Indian conglomerate Vedanta and Taiwanese electronics manufacturing giant Foxconn signed a Memorandum of Understanding on September 14 2022 with the Gujarat government to set up a semiconductor and display manufacturing unit in the state. The project is worth around 20 billion USD. This upcoming facility will mark the beginning of chip manufacturing in India. This is also strategically important for India because it will reduce our dependence on other countries.

Out of the total investment of Rs 1,54,000 crore, Rs 94,000 crore will go into setting up the display manufacturing unit while Rs 60,000 crore will be invested for the semiconductor manufacturing facility, the official said in event of MoU. The FAB (fabrication facility) manufacturing unit in the state facility in Gujarat would create one lakh job opportunities.

As per the MoUs signed by both parties, the Gujarat government will facilitate the investor in obtaining necessary permissions and clearances from the state departments concerned. Among the subsidies and assistance under the state policy, Gujarat will provide additional capital assistance at 40 percent of the capital expenditure assistance extended by the Centre for the projects approved under the India Semiconductor Mission. One-time reimbursement of 100 percent stamp duty and registration fees paid to the government, fixed water tariff at Rs 12 per cubic meter for five years, and a capital subsidy of 50 percent for a desalination plant are the financial benefits under the new policy.

A massive shortage in the semiconductor supply chain last year affected many industries, including electronics and automotive. To cut dependence on imports from nations like Taiwan and China, the government brought a financial incentive scheme for manufacturing semiconductors in the country. Vedanata-Foxconn is one of the successful applicants for the Production Linked Incentive (PLI) scheme for semiconductors and is also a step towards achieving self-reliance in the semiconductor field for the country.

India surpasses United Kingdom to become fifth largest economy.

India has overtaken the UK to become the fifth-largest economy in the world. Economists and business executives anticipated that India’s position would continue to improve in the years to come due to greater economic growth.

According to figures from the International Monetary Fund (IMF), India passed the United Kingdom (UK) to become the fifth-largest economy in the world in the last quarter of 2021. India’s economy currently ranks just four nations ahead of it in terms of size in dollars. The United States, China, Japan, and Germany are the only nations with economies larger than India’s. The UK is currently in sixth place, just behind India.

IMF’s own forecasts show India overtaking the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind the US, China, Japan and Germany. A decade ago, India ranked 11th among the largest economies, while the UK was fifth. The government is expecting the economy to grow at 7-7.5 per cent in 2022-23, in line with its projections made at the beginning of this financial year. India registered a growth of 8.7 per cent in 2021-22. 

While India has overtaken the United Kingdom in terms of the size of the economy, the per capita income in India remains very low. When it comes to per capita income, which is a measure of how much money is made per person in a country, India is ranked 122 out of 190 countries.

India is set to become the third largest economy in the world by 2029. A State Bank of India report said India will surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth. The report said that the country has undergone a large structural shift since 2014 and is now the 5th largest economy overtaking the United Kingdom. 

All about INS Vikrant.

India got its first Indigenous Aircraft Carrier with Prime Minister Narendra Modi commissioning INS Vikrant in Kochi, marking a significant step towards strengthening the ‘Aatmanirbhar Bharat’ goal in the strategic sector of defence.

The Vikrant has 76 per cent indigenous content, which includes combat management system, electronic warfare suite, data network, and integrated platform management system, among others. As far as the origin of the word goes, the ‘Vi’ prefix in the Sanskrit word Vikrant denotes something that is distinctive or extraordinary, and the ‘krant’ suffix means to move or advance in a direction.

Named after her illustrious predecessor, which had played a vital role in the 1971 war, INS Vikrant is designed by the Indian Navy’s in-house Warship Design Bureau (WDB) and built by the Cochin Shipyard, a public sector shipyard. With the commissioning of Vikrant, India will have two operational aircraft carriers, which will bolster the maritime security of the nation.

Stretching to 262m, Vikrant in its length exceeds that of two football fields and is 62m wide. Its height of 59m packs in 14 decks in all and the vessel features over 2,300 compartments and provides room for a crew of 1,600 personnel and includes specialised cabins for women officers. Construction of the vessel began in 2009 at the Cochin Shipyard Ltd (CSL) and the total cost involved is around Rs 23,000 crore.

An aircraft carrier is one of the most potent marine assets for any nation, which enhances a Navy’s capability to travel far from its home shores to carry out air domination operations. Many experts consider having an aircraft carrier as essential to be considered a “blue water” navy — that is, a navy that has the capacity to project a nation’s strength and power across the high seas. An aircraft carrier generally leads as the capital ship of a carrier strike/ battle group. As the aircraft carrier is a prized and sometimes vulnerable target, it is usually escorted in the group by destroyers, missile cruisers, frigates, submarines, and supply ships.

India to be next global SaaS capital.

The Indian IT sector continues to charge ahead on its trajectory of growth and transformation, with SaaS (Software as a Service) setting the stage for the next wave of disruption, according to a study. 

India is home to about 100-plus unicorns across different segments with an accelerated pace of entrepreneurship and is rapidly emerging as a hub for SaaS start-ups, cited the study by EY and CII, titled “India: The next global SaaS capital.” 

Over 80 per cent of the SaaS promoters feel there is the need to build a robust talent pool, according to the EY-CII study. While the landscape is mainly driven by small and medium businesses with a focus on large enterprises, SaaS companies in the SMB market are structured very differently from those catering to the enterprise market.

“Macro-economic environment notwithstanding, the funding activity in the first two quarters of this year surpassed the funding activity in 2021 – which was a breakout year with over $4.3 bn in funding for SaaS start-ups,” said EY India.

According to other reports, the Indian SaaS market is expected to grow multi-fold by 2025, accounting for almost seven to ten per cent of the global SaaS market, from 2-4 per cent at present.

Led by Freshdesk and Zoho Corporation, India now has 18 SaaS unicorns as compared to one in 2018, with India being the third largest SaaS ecosystem globally, after the US and China. The number of SAAS companies in the country have more than doubled in 2021 as compared to 2019 and the funding too increased from $2.6 billion in 2019 to $6 billion in 2021.

According to the EY-CII report, SaaS providers are also doubling down on their customer acquisition, retention, and success strategies by upselling and cross selling to existing customers. The study also pointed towards the need for skill development in areas like product management and design to cater to the growing talent demand in the SaaS industry.

RBI heading to curb prevailing inflation.

In the august meeting of the committee of the apex bank, the Reserve Bank of India (RBI) hiked the repo rate by 50 basis points to 5.4 per cent, its third hike in the current financial year continuing its fight to tame stubbornly high inflation.

The decision of the six-member Monetary Policy Committee (MPC) of the RBI, which met on August 3 to Aug 5, 2022 was largely in line with expectations. Financial markets were largely unchanged at mid day as the hike was on expected lines. The central bank said it would continue its stance of withdrawal of accommodation to ensure that inflation moves close to the target of 4 per cent over the medium term, while supporting growth.

RBI has been increasing policy rates since May, with a cumulative rate hike of 140 basis points being done so far, India’s retail inflation for June inched down in June to 7.01% from 7.04% in the previous month, but it remained above the 7% mark for the third successive month and above RBI’s 2-6% tolerance level for a sixth straight month.

But the estimates for July show that India’s inflation problem seems to have bottomed out sooner than the MPC thought. At its latest meeting earlier this month, RBI retained inflation projections for FY23 at 6.7% and estimated inflation to average 7.1% in the September quarter. There is more evidence that inflation in India has peaked for now, and it is likely to slow faster than RBI’s published trajectory, coming into the target band by October, according to our latest tracking estimates. The Central government working with RBI target to curb inflation from the economy in all possible way, the objective of these steps as expected by the committee is to lower the prices of basic commodity and works toward appreciation of the rupee against dollar.

India to be among the Developed Nations in the next 25 years.

In his Independence Day speech on Monday, Prime Minister Narendra Modi said that India should take a pledge to become a developed country by 2047 – the 100th year of independence.

The prime minister urged citizens of the country to work towards achieving the “panch pran”, or five pledges, in the next 25 years. Apart from making India a developed country, the citizens should remove traces of colonial mindset, take pride in their roots, forge unity and inculcate a sense of duty, Modi said.

“We need to now move with a renewed focus and resolve for the next 25 years, and this can be made possible through the strength and determination of 130 crore Indians,” the prime minister said in his ninth Independence Day speech from the Red Fort in Delhi.

The World Bank currently classifies India as a lower-middle-income country, the second from the bottom of the four income groups it puts countries into—low, lower-middle, upper-middle, and high income. While the multilateral institution junked the ‘developed’ and ‘developing’ nomenclature some years back, a developed nation would still correspond with a high-income country. According to the latest World Bank statistics, India’s average gross income per capita, at $2,170 in 2021, was ahead of Nigeria at $2,100 and Pakistan at $1,500 but trailed Bangladesh at $2,620 and Bhutan at $2,840.

The Prime Minister said India must be a developed nation in next 25 years, terming it as an aspirational society. He appealed and asked for the support of the people to walk forward with him on these 5 pledges assuring that India will definitely be a developed nation in every front if everyone walks on the path of these 5 pledges.   

  • India will have to walk forward with very big resolutions. If we have to achieve the target of a developed nation then nothing less than this will matter.
  • We have to leave our servitude mindset from every inch, corner, thinking, and mentality. We don’t have to carry forward any reflection of our servitude in any form in the country and have to overcome this.
  • We have to be proud of our heritage which gave India its golden glory in the past.
  • We have to keep in mind our ‘…ekta and ekjutta (Unity and solidarity)… na koi apna aur na koi paraya (we belong to everyone and everyone belongs to us)… ek barat shresth bharat (one country, pride country).
  • Responsibilities of citizens in which even a Prime Minister is not excluded, because he is also a citizen first.

Central Government to remove air fair cap from 31st august.

India will remove the fare caps it imposed on domestic airlines in 2020 during the COVID-19 pandemic from August 31, the country’s civil aviation ministry said on Wednesday, lifting restrictions on ticket prices. The government, in a rare move, had regulated fares by imposing a minimum and maximum band based on the flight’s duration to prevent ticket prices from spiking due to pent-up demand arising from restrictions on air travel easing. Given the current situation, airfares may go up as carriers as jet or aviation turbine fuel (ATF) prices have almost tripled in the last two years.

The ministry had imposed lower and upper limits on air fare after the resumption of services in May, 2020 following the two-month nationwide lock-down to contain the spread of Covid-19. Thereafter, the limits were relaxed in a phased manner as per the improvement in air traffic in the country. The lower caps were meant as a relief for airlines struggling after the pandemic. At the same time, the upper caps on air fare were fixed ensuring that passengers do not have to pay a hefty amount for air travel.

Earlier, discussions on removing the fare bands for domestic air fare were held among the stakeholders, including the government authorities and airlines. The airlines were of the view that removal of the pricing cap is required for the full-fledged recovery of domestic air traffic.

Jaipur : The Pink City of India.

The capital of Rajasthan, the largest state in the country, Jaipur is all about its glorious history. It is also widely known as the Pink City. The name is derived from the fact that the erstwhile area of Jaipur which is now the area around the HawaMahal, was built of pink sandstone. The narrow streets, the colourful clothing, the lovely aromas bursting forth from the food, the vast number of palaces speak volumes of the deep rooted culture of the city.
Maharaja Sawai Jai Singh II invoked the artisans from all over the world and facilitated them with all the things they required, to help in creating the exotic city of beautiful architecture as Jaipur. Today, Jaipur is a hub for rich wedding destinations. Royal weddings are organized here. Exquisite destinations are specially designed for marriages, and offer an experience of one of its kind. Jaipur’s forts, monuments, and museums can be read about further.


Some of the best monuments and sites to visit in pink city are.


Amber/Amer Fort.
At a distance of 13 km from Jaipur Junction Railway Station, Amer Fort or Amber Fort is located in Amer near Jaipur. It is one of the best-preserved forts in Rajasthan, The architecture of Amer Fort is influenced by both Hindu and Muslim styles. Among the famous tourist places in Jaipur, Amer Fort was built using red sandstone and overlooks Maota Lake which is the main water source to the Palace.


City Palace.
City Palace, Jaipur was constructed between 1729-1732, in Jaipur as it paints the picture of heritage and rich culture. Sawai Jai Singh II has started the work of this palace, exclusively the exterior architecture of the building. Moving from Amber, he has moved to the Jaipur city because of the increase in water shortage problem which resulted in an inadequate supply of water to people.


Nahargarh Fort.
Nahargarh is one of three forts in the vicinity of the “Pink City” of Jaipur. Despite its prominence, the fort remained sadly neglected until recent years, resulting in visitors frequently overlooking it in favor of iconic and well-preserved Amber Fort on the opposite end of the ridge. Extensive restoration works and some exciting new attractions have revitalized the fort though, making it one of the top tourist places in Jaipur.


Jai Garh Fort.
Situated on one of the mountains of the Aravalli Range, Jaigarh Fort is a landmark structure in Jaipur. The strategically designed Jaigarh Fort was fundamentally built to protect the Amer Fort from any attack. Jaigarh Fort is popular for numerous reasons and the two most prominent are its mesmerizing architecture, which is a fusion of Rajputana and Mughal style, and for being the hub of artillery during the Mughal era.


Jantar Mantar.
Jantar Mantar is one of the finest monuments and striking creations by astronomers and architectures. It is a compilation of architectural astronomical devices which provided accurate astronomical results. It has even struck the modern approach of science. Jantar Mantar is the most well-known observatories amongst all the buildings formed during the sovereignty of Maharaja Sawai Jai Singh II.


Hawa Mahal.
Hawa Mahal was built by Maharaja Sawai Pratap Singh in 1799 and was designed by architect Lal Chand Usta as a ‘Rajmukut’. The Hawa Mahal was built specifically for Rajput members, and especially for women, so that the royal ladies could watch the daily drama dance in the street below, as well as have a beautiful view of the city from the window.


Central Museum
Central museum is also known as ‘Albert museum’ or ‘Government Central Museum’. This is the oldest museum of the city and was constructed in 1876 beneath the command of Lt. Swinton Jacob. Initially the building was a town hall. But on the order of Maharaja Madho Singh it was transformed into an art museum.

Vande Bharat : India’s Indigenous bullet train.

Indian Railways is developing its own super-fast train by increasing the speed of the locally made Vande Bharat Express in a phased way to match those running in European nations. The railways plans to increase the speed of the new version of the Vande Bharat

Express train to 180km per hour (kmph) this year from 160kmph. The train is expected to run at speeds of 220kmph byb2025 and subsequently faster at 260kmph, on par with the speed of most European high-speed trains. Vande Bharat would also increase its speed in phases and continue to improve the overall passenger experience, safety and security.

The first version of the Vande Bharat trains was launched in 2019 under the Make in India initiative and is  designed to reach speeds up to  160kmph. However, this has been boosted to 180kmph in the second version, which will start operating this month, with 75 such trains deployed by 15 August next year as part of the country’s 75 years of independence celebrations.

Indian Railways has set a tar-get of manufacturing 300 Vande Bharat train sets over the next three years (2025). This will be increased to 500 trains by 2028. Prime Minister Narendra Modi has given the Railways a target to make at least 75 such trains by August 2023, coinciding with 75 years of Indian Independence. The plan is also to connect 75 key Indian cities with these trains. Indian Railways’ Integral Coach Factory, Chennai, plans to manufacture around 10 Vande Bharat trains a month and, eventually, the Rail Coach Factory, Kapurthala, and the Modern Coach Factory, Rae-bareli, are also likely to start manufacturing these coaches to meet the target of 500 trains. Two sets of Vande Bharat trains are running on the Delhi-Katra and Delhi-Varanasi routes. Two more Vande Bharat semi-high-speed trains are expected to enter operations by August.

Zero probability of recession in India.

Amid global pandemic accompanied by Russia-Ukraine crises and rising prices of fuels, the major economies across the globe are facing economic slowdown majorly in the form of peaked inflation, unstable government, industrial slowdown, low supplies and much more consequences. Some of the economies have slipped into crises, while some are struggling through the worst phase of slowdown. Industry experts have been showing aspersions that a global recession is just around the corner.

The recent survey by Bloomberg has attempted to gauge the percentage probabilities of various countries slipping into recession. The survey by Bloomberg said that risk of recession in a handful of Asian economies is rising as higher prices spur central banks to accelerate the pace of their interest rate hikes. Sri Lanka, which is in the midst of its worst economic crisis ever, has an 85% probability of falling into recession in the next year, up from a 33% chance in the previous survey by far the highest increase in the region. Economists see a 20% chance that China will enter recession, and a 25% likelihood that South Korea or Japan will enter one. Bloomberg economists also raised their expectations for a chance of recession in New Zealand, Taiwan, Australia and the Philippines to 33%, 20%, 20% and 8%, respectively. Central banks in those places have been raising interest rates to tame inflation.

India being one of the major and growing economy, also have been facing the consequences of global crises, particularly inflation. The survey report by Bloomberg for India is that it mentions that India has zero probability of slipping into recession. India literally has 0 percent chances of recession as against economic giants US and China which has 40 percent and 20 percent respectively. Although for India, surging domestic prices of key commodities is mainly on account of imported inflation, retail inflation based on consumer price index stood at 7.01%. In April, it had jumped to 8-year high of 7.79% have feared the economist about a probable recession but the case for India is much better compared to other economies.

Launching of first International Bullion Exchange in India.

India being the second biggest consumer of precious metals, tries to regulate the market for the precious metal. For this Prime Minister on July 29 laid the foundation of India International Bullion Exchange (IIBX), based at Gujarat International Finance Tec-City, or GIFT City in western Gujarat state.

India imported 1,069 tonnes of gold in 2021, up from 430 tonnes a year ago. Indian households own an estimated collective 25,000 tonnes of gold, which passes from one generation to the next. New Delhi has been trying to monetise these holding to reduce the imports. Gold is tightly regulated in India and currently only nominated banks and agencies approved by the central bank can import gold and sell to dealers and jewellers. The opening of the international bullion exchange is aimed to standardize the gold pricing in India. It further seeks to it easier for small bullion dealers and jewellers to trade.

Currently, there are nominated banks and agencies who have been approved by the central bank to conduct trade or import gold and sell it to dealers.

“IIBX with its technology-driven solutions, will facilitate transition of Indian bullion market towards a more organised structure by granting qualified jewellers a direct access to import gold directly through the exchange mechanism,” the exchange said in a statement.

The International Bullion Exchange shall be the Gateway for Bullion Imports into India, wherein all the bullion imports for domestic consumption shall be channelized through the exchange, as per a government’s notification.

The exchange ecosystem is expected to bring all the market participants at a common transparent platform for bullion trading and provide an efficient price discovery, assurance in the quality of gold, enable greater integration with other segments of financial markets and help establish India’s position as a dominant trading hub in the World.