PM Modi inaugurates India’s first international bullion exchange at GIFT city, Gandhinagar

Tags: Economy/Finance State News

Prime Minister Narendra Modi on 29 July launched 'India International Bullion Exchange (IIBX)', the country's first international bullion exchange near Gandhinagar.

Important facts

• He visited India's first International Financial Services Centre (IFSC) at the Gujarat International Finance Tec-City (GIFT City) on 29 July.

• Gandhinagar’s GIFT city is an international financial services hub set up by the Gujarat government outside the State capital. 

• The exchange will facilitate efficient price discovery with responsible sourcing and quality assurance, besides promoting financialization of gold in India.

• India is the second largest consumer of gold in the world and the establishment of IIBX is seen as India's effort to bring transparency in the market for this precious metal.

• In addition, setting up of IIBX could lead to standard pricing of gold in the country and make it easier for small bullion dealers and jewellers to trade the precious metal.

India, a leading importer of bullion

• India is a major importer of the metal and imported 1,069 tonnes of gold in 2021, up from 430 tonnes in 2020.

• Currently, only designated banks and agencies approved by the Reserve Bank of India in the country can import gold and sell it to dealers and jewellers across the country.

Foundation stone of IFSCA

• PM Modi laid the foundation stone of the headquarters building of the International Financial Services Centres Authority (IFSCA).

• IFSCA is the country’s first and only IFSC in line with those in UAE, Singapore and Hong Kong. 

• IFSCA will support innovation and also act as a catalyst for growth opportunities in the financial services sector in the country.