Deter purchase of gold bars, biscuits: UP Govt dept to jewellers

Uttar Pradesh tax officials urged gold traders to promote jewellery exchange to ease pressure on foreign reserves amid rising gold imports

The Uttar Pradesh tax department on Wednesday urged gold and bullion traders in Gautam Budh Nagar to discourage unnecessary investment in gold bars and biscuits and promote exchange-based jewellery purchases instead, officials said.

The move came amid concerns over rising gold imports and pressure on India’s foreign exchange reserves. (HT Photo)

The appeal was made during a meeting chaired by additional commissioner of state tax Sandeep Bhagia at the district headquarters auditorium in Surajpur, Greater Noida, and participated by representatives of jewellery associations, bullion traders and senior administrative and police officials, they added.

The move came amid concerns over rising gold imports and pressure on India’s foreign exchange reserves. Officials said discussions focused on the impact of increasing gold imports on foreign currency reserves at a time of global economic uncertainty and rising demand for the US dollar due to ongoing international conflicts.

“India is among the world’s largest importers of gold and a significant amount of foreign exchange is spent annually on imports. In the current international economic situation, it becomes important for all stakeholders, including traders and consumers, to adopt a balanced and responsible approach,” Bhagia said during the meeting.

He said unnecessary investment in gold and silver bullion should be avoided to reduce pressure on foreign exchange reserves. “Reducing avoidable bullion purchases can contribute to conserving foreign currency and strengthening the country’s economic stability. The objective is not to affect genuine jewellery trade but to promote responsible consumption and investment behaviour,” Bhagia added.

Assuring their cooperation to the government’s appeal, some jewellers present at the meeting also said the district’s jewellery market was primarily driven by ornaments rather than speculative bullion trading.

“A large share of customers already prefer exchanging old jewellery for new designs instead of making direct bullion investments. Retail jewellery demand remains the primary driver of the market here,” said a Sector 18-based jeweller, Ankit Kumar.

Another trader, who participated in the meeting, said jewellers were aware of the broader economic concerns linked to gold imports and would encourage responsible purchasing practices among customers.

Officials said the meeting was held in line with recent public appeals made by Prime Minister Narendra Modi and chief minister Yogi Adityanath regarding economic prudence and responsible consumption.