Sachin Jain is Regional CEO of World Gold Council India. He has a deep understanding of the Indian consumer and jewellery market, from strategic thinking to practical execution. He has over two decades of rich experience and understanding of the Indian consumer. Earlier, Sachin has held senior positions for De Beers, Lladro, Swatch Group and Benetton.
“We in a very happy industry in general because the product is wonderful and when somebody looks at a product that glee in their eyes, it is something that's amazing,” says Jain in a candid interview with RN Bhaskar, Consulting Editor, The Free Press Journal.
FPJ: You have joined the World Gold Council at a time when the government is introducing market-friendly policies. Historically, the government hasn't been very supportive of the gold trade, right from the Gold Control Act to the high import duties. What is it that you are happy about the policies that the government has just introduced and what is it in these policies that excites you?
Sachin Jain: From my perspective, the government has a long-term vision for where India is today and where it can go in the future. I wouldn’t approach this with cynicism, but rather with optimism. One of the significant steps in the Union Budget 2024, aside from gold-related policies, was that it was an extremely balanced, one that fosters progress for our nation. The ambitious roadmap of Vision 2047, where we aim to be a "Viksit Bharat" or a developed nation, set forth by Prime Minister Modi, is inspiring. I believe India is ready for this ambition, and I think we are in good hands.
Focusing on the recent gold policies, the government’s move to rationalize duties is a great step forward. In just one statement, our Finance Minister Sitharaman effectively dismantled the smuggling networks and the grey market, eliminating the disparities in the business. Now, we have a level playing field, and it’s exciting to see the potential of the Indian gold industry. Previously, malpractices hindered fair competition, but now consumers will benefit from a more organized market. I’m confident that this will lead to positivity in the industry, with businesses operating in a more structured and transparent manner.
This change is part of a larger economic system—how the wallet is connected to the card, and everything integrates into the financial framework. Over the coming months and years, we will witness what the gold industry has done and what it can do, and this progress will become evident.
Considering the global geopolitical situation and economic challenges, I recently visited China, and I saw the struggles people are facing there. When I compare that to the situation in India, I feel we are in a phenomenal place. The next decade will be transformative for India’s economy and particularly for the gold industry. I am 100 per cent certain that these changes will be permanent and will elevate India to where it rightfully belongs. As we reflect on India’s historical greatness, I believe we are not far from returning to those golden days.
FPJ: Following up on the previous point, I believe that while duty rates have been reduced, the combined impact of the duty plus GST is still quite high. Since anything over 5 per cent can still encourage smuggling, do you think there's room for further reduction?
Sachin Jain: I believe none of us in the industry were expecting such a significant cut, which is great. My first message to the industry, using your platform, would be to focus on proving to the government that this step was the right one. We need to improve our behaviour, especially in how we serve the most important part of the value chain—the end consumer. It is essential to build their confidence by interacting with transparency, integrity, and standing behind the products we offer.
This cut is already substantial, and it will take some time for the industry to adapt and operate at this level. I would not advocate for further reductions just yet. We need to first absorb and capitalise on the opportunities the government has provided. I can tell you, after meeting with one of the leading retailers recently, that they are ready to embrace more organised operations, particularly as consumers in smaller towns start using credit cards for purchases.
Now that we have been given this opportunity, it is up to us as an industry to perform and demonstrate the benefits of this change. For now, the focus should be on making the most of this strong step, showing that we can improve, and deliver positive results.
FPJ: You have also worked to instil confidence in the end consumer by introducing measures, such as your recent announcement about standards. Could you elaborate on that?
Sachin Jain: We are very excited to announce the first self-regulatory organization (SRO) for the gold industry, not just in India, but in the world Indian Association for Gold Excellence and Standards (IAGES). At the World Gold Council in India, we are proud to have pioneered this initiative. This SRO will oversee the entire gold value chain, and the timing is absolutely right for its introduction.
The gold value chain today is highly diverse and fragmented. For instance, the connection between refiners and manufacturers is almost non-existent, creating significant gaps. We have studied both the consumer market and engaged with the government, and one thing is clear: a large number of consumers refrain from buying gold due to a trust deficit. Even those who do buy gold often face similar concerns, despite their long standing relationships with family jewellers. While there’s a sense of loyalty, many consumers, particularly the younger generation, are seeking more transparency and accountability.
With 70 per cent of India's population set to be millennials or younger by December 31, 2024, the gold industry must adapt. These consumers are global citizens with wide exposure and are not content with the old ways of doing business. They demand trust, transparency, and the ability to "vote with their wallets." If we believe the future will thrive in the same way as the past, we are mistaken.
That's why the introduction of the IAGES is such a crucial step. First, it will unify the industry, bringing everyone—from refiners to retailers—under one transparent code of conduct. Businesses will voluntarily open themselves to audits, ensuring that they operate with integrity. This is a collaborative effort, created by the industry, for the industry, with independent audit panels overseeing adherence to the established code of conduct.
Most businesses in the gold industry already operate responsibly, and our role will be to recognize and accredit them, helping build trust with the new generation of consumers. We also aim to guide businesses that want to improve but may not know exactly how to do so. The IAGES will provide accreditation and guidance to help them operate at higher standards.
Importantly, this is not just for large businesses. It is open to everyone in the gold value chain—small retailers, refiners, and bullion traders alike. We welcome all who are willing to conduct their business in a proper, transparent manner.
FPJ: Who will be responsible for monitoring the small goldsmiths?
Sachin Jain: The point is not about monitoring, but rather that the process is voluntary. Membership in the IAGES and accreditation by the Association is entirely voluntary. We have a simplified code of conduct for every part of the value chain, and businesses must adhere to that. Independent auditors will be appointed to conduct the audits, and businesses will have the option to choose from a list of auditors. The audit will determine either the accreditation or provide guidance for achieving it.
For example, if a business is not yet operating in a manner conducive to accreditation, clear guidelines will be provided on the necessary changes. Once those adjustments are made, the business can reapply for accreditation.
FPJ: So, in a way, are you doing something similar to what the LBMA does for the refining industry?
Sachin Jain: In some ways, yes, but the LBMA focuses solely on one part of the value chain—refiners. We, on the other hand, cover the entire gold value chain. Our goal is that when a consumer walks into a street like Bandra, where there are about 400 retailers, and they see that 10, 20, or even 70% of them in the future have the IAGES logo, they know these businesses operate ethically and transparently.
By "operating in the right manner," we don't just mean adhering to strict rules and regulations. It also involves ensuring there is no child labour, maintaining ethical work environments, providing meaningful invoices, and paying taxes. It is about both complying with legal regulations and upholding ethical business practices.
FPJ: This is an excellent idea, but in India, there are instances where people might display the IAGES logo while not following the rules, potentially misleading customers. Will there be a regulatory authority to ensure that your logo is not misused?
Sachin Jain: You are absolutely right. In India, there's often a significant difference between being popular and being correct. The success of this organisation will depend on making strong decisions and taking decisive actions against those who misuse the system or fail to adhere to the standards. It will also require the courage to deny qualification to those who do not comply.
FPJ: Are you working in tandem with the government to make sure that action be taken against anyone who misuses the system
Sachin Jain: It is not about relying on the government; rather, it is about creating an independent team governed by a governing body. The current board, for example, includes a group of prominent advisors, including former chairmen of SEBI and NITI Aayog, who have played significant roles in shaping our nation. These individuals will form part of an Advisory Board.
Each association involved will have an independent member on the board, making up the governing board. The goal is to build a strong team led by someone with experience in establishing similar organisations. This team will aim to stand for positive change and align people towards a common direction.
The role is not just to be an auditor enforcing rigid rules but to shape the future in a constructive way. It requires a balance of collaboration and firmness. The success and credibility of this organisation will be determined not only by meeting standards but also by taking action against those who do not comply.
FPJ: Given all that the government has done, what else would you hope to see from them in the coming year?
Sachin Jain: For me, both short-term and long-term objectives are important. In the long term, I believe the direction laid out by the Prime Minister through Vision 2047 and "Viksit Bharat" is crucial. Our role in the gold industry is to collaborate with the government to define what gold’s role will be by 2047 and work backward to achieve those goals. We need to outline a clear path for milestones in 2025, 2030, 2035, and 2040 and ensure we align with the government on this vision. We are initiating some work in this area and hope to see results soon.
In the short term, the recent reduction in customs duty is a significant step, and it is now our responsibility to ensure effective implementation. The government has done its part; the onus is on us to perform well.
One immediate area where the government could assist is in the regulation of digital gold. As digital transactions become more prevalent, digital gold has become popular due to its ease of access and affordability. However, it is currently unregulated, which could lead to potential issues, including reputational damage. We hope the government will introduce regulations to legitimise digital gold and protect consumers.
Another important area is the establishment of a spot exchange. Currently, India is a price taker rather than a price maker. We need to work with the government to develop a system where India can set gold prices, rather than merely responding to global rates.
Ultimately, both the government and the industry need to collaborate to improve transparency and regulation. While rules and regulations may seem restrictive, they are essential for sustainable growth and to prevent unethical practices. Without them, the industry cannot progress effectively. As Einstein said, if you continue doing things the way you always have, you’ll keep getting the same results. To achieve better outcomes, we need to adapt and innovate.
FPJ: There seems to be a discrepancy between the CEPA rules, which allow for relatively cheaper imports, and the regular domestic import rules. Do you think these discrepancies will be addressed and resolved?
Sachin Jain: I believe the discrepancies have already been addressed. The recent changes have significantly altered the situation compared to just a few months ago. It seems to be a matter of balancing the adjustments, and I am confident that further fine-tuning will follow. The issue was recognised, and steps have been taken to correct it.
FPJ: India has a significant amount of gold that remains underground. To bring this gold into the mainstream, we need a scheme that incentivises its disclosure and integration. This scheme should ensure that the process is legitimate, not overly penalising for the customer, and avoids tax authorities targeting individuals for undisclosed gold from the past. Is such a scheme part of the ‘Vision 2047’ agenda?
Sachin Jain: Absolutely, you are spot on. Currently, gold primarily comes from mining and a small amount from recycling. However, in the future, gold that is already above ground will become a significant resource in itself, essentially acting as a "big household mine" for India. We need an efficient mechanism to facilitate this gold flow—one that is easy, productive, and systematically managed.
We are actively discussing this with the government, and there are ongoing efforts to develop a solution. This gold is a valuable asset for our country, and its treatment in financial accounts needs to change. Currently, gold is not treated as a capital asset, unlike an iPhone, which depreciates to zero after import. We should start by acknowledging it appropriately on balance sheets as a valuable asset. This recognition would be a positive step toward treating gold with the value it truly holds.
FPJ: You have joined the World Gold Council at a time when the government is introducing market-friendly policies. Historically, the government hasn't been very supportive of the gold trade, right from the Gold Control Act to the high import duties. What is it that you are happy about the policies that the government has just introduced and what is it in these policies that excites you?
Sachin Jain: From my perspective, the government has a long-term vision for where India is today and where it can go in the future. I wouldn’t approach this with cynicism, but rather with optimism. One of the significant steps in the Union Budget 2024, aside from gold-related policies, was that it was an extremely balanced, one that fosters progress for our nation.
The ambitious roadmap of Vision 2047, where we aim to be a "Viksit Bharat" or a developed nation, set forth by Prime Minister Modi, is inspiring. I believe India is ready for this ambition, and I think we are in good hands.
Focusing on the recent gold policies, the government’s move to rationalize duties is a great step forward. In just one statement, our Finance Minister Sitharaman effectively dismantled the smuggling networks and the grey market, eliminating the disparities in the business. Now, we have a level playing field, and it’s exciting to see the potential of the Indian gold industry. Previously, malpractices hindered fair competition, but now consumers will benefit from a more organized market. I’m confident that this will lead to positivity in the industry, with businesses operating in a more structured and transparent manner.
This change is part of a larger economic system—how the wallet is connected to the card, and everything integrates into the financial framework. Over the coming months and years, we will witness what the gold industry has done and what it can do, and this progress will become evident.
Considering the global geopolitical situation and economic challenges, I recently visited China, and I saw the struggles people are facing there. When I compare that to the situation in India, I feel we are in a phenomenal place. The next decade will be transformative for India’s economy and particularly for the gold industry. I am 100 per cent certain that these changes will be permanent and will elevate India to where it rightfully belongs. As we reflect on India’s historical greatness, I believe we are not far from returning to those golden days.
FPJ: Following up on the previous point, I believe that while duty rates have been reduced, the combined impact of the duty plus GST is still quite high. Since anything over 5 per cent can still encourage smuggling, do you think there's room for further reduction?
Sachin Jain: I believe none of us in the industry were expecting such a significant cut, which is great. My first message to the industry, using your platform, would be to focus on proving to the government that this step was the right one. We need to improve our behaviour, especially in how we serve the most important part of the value chain—the end consumer. It is essential to build their confidence by interacting with transparency, integrity, and standing behind the products we offer.
This cut is already substantial, and it will take some time for the industry to adapt and operate at this level. I would not advocate for further reductions just yet. We need to first absorb and capitalise on the opportunities the government has provided. I can tell you, after meeting with one of the leading retailers recently, that they are ready to embrace more organised operations, particularly as consumers in smaller towns start using credit cards for purchases.
Now that we have been given this opportunity, it is up to us as an industry to perform and demonstrate the benefits of this change. For now, the focus should be on making the most of this strong step, showing that we can improve, and deliver positive results.
FPJ: You have also worked to instil confidence in the end consumer by introducing measures, such as your recent announcement about standards. Could you elaborate on that?
Sachin Jain: We are very excited to announce the first self-regulatory organization (SRO) for the gold industry, not just in India, but in the world Indian Association for Gold Excellence and Standards (IAGES). At the World Gold Council in India, we are proud to have pioneered this initiative. This SRO will oversee the entire gold value chain, and the timing is absolutely right for its introduction.
The gold value chain today is highly diverse and fragmented. For instance, the connection between refiners and manufacturers is almost non-existent, creating significant gaps. We have studied both the consumer market and engaged with the government, and one thing is clear: a large number of consumers refrain from buying gold due to a trust deficit. Even those who do buy gold often face similar concerns, despite their long standing relationships with family jewellers. While there’s a sense of loyalty, many consumers, particularly the younger generation, are seeking more transparency and accountability.
With 70 per cent of India's population set to be millennials or younger by December 31, 2024, the gold industry must adapt. These consumers are global citizens with wide exposure and are not content with the old ways of doing business. They demand trust, transparency, and the ability to "vote with their wallets." If we believe the future will thrive in the same way as the past, we are mistaken.
That's why the introduction of the IAGES is such a crucial step. First, it will unify the industry, bringing everyone—from refiners to retailers—under one transparent code of conduct. Businesses will voluntarily open themselves to audits, ensuring that they operate with integrity. This is a collaborative effort, created by the industry, for the industry, with independent audit panels overseeing adherence to the established code of conduct.
Most businesses in the gold industry already operate responsibly, and our role will be to recognize and accredit them, helping build trust with the new generation of consumers. We also aim to guide businesses that want to improve but may not know exactly how to do so. The IAGES will provide accreditation and guidance to help them operate at higher standards.
Importantly, this is not just for large businesses. It is open to everyone in the gold value chain—small retailers, refiners, and bullion traders alike. We welcome all who are willing to conduct their business in a proper, transparent manner.
FPJ: Who will be responsible for monitoring the small goldsmiths?
Sachin Jain: The point is not about monitoring, but rather that the process is voluntary. Membership in the IAGES and accreditation by the Association is entirely voluntary. We have a simplified code of conduct for every part of the value chain, and businesses must adhere to that. Independent auditors will be appointed to conduct the audits, and businesses will have the option to choose from a list of auditors. The audit will determine either the accreditation or provide guidance for achieving it.
For example, if a business is not yet operating in a manner conducive to accreditation, clear guidelines will be provided on the necessary changes. Once those adjustments are made, the business can reapply for accreditation.
FPJ: So, in a way, are you doing something similar to what the LBMA does for the refining industry?
Sachin Jain: In some ways, yes, but the LBMA focuses solely on one part of the value chain—refiners. We, on the other hand, cover the entire gold value chain. Our goal is that when a consumer walks into a street like Bandra, where there are about 400 retailers, and they see that 10, 20, or even 70% of them in the future have the IAGES logo, they know these businesses operate ethically and transparently.
By "operating in the right manner," we don't just mean adhering to strict rules and regulations. It also involves ensuring there is no child labour, maintaining ethical work environments, providing meaningful invoices, and paying taxes. It is about both complying with legal regulations and upholding ethical business practices.
FPJ: This is an excellent idea, but in India, there are instances where people might display the IAGES logo while not following the rules, potentially misleading customers. Will there be a regulatory authority to ensure that your logo is not misused?
Sachin Jain: You are absolutely right. In India, there's often a significant difference between being popular and being correct. The success of this organisation will depend on making strong decisions and taking decisive actions against those who misuse the system or fail to adhere to the standards. It will also require the courage to deny qualification to those who do not comply.
FPJ: Are you working in tandem with the government to make sure that action be taken against anyone who misuses the system
Sachin Jain: It is not about relying on the government; rather, it is about creating an independent team governed by a governing body. The current board, for example, includes a group of prominent advisors, including former chairmen of SEBI and NITI Aayog, who have played significant roles in shaping our nation. These individuals will form part of an Advisory Board.
Each association involved will have an independent member on the board, making up the governing board. The goal is to build a strong team led by someone with experience in establishing similar organisations. This team will aim to stand for positive change and align people towards a common direction.
The role is not just to be an auditor enforcing rigid rules but to shape the future in a constructive way. It requires a balance of collaboration and firmness. The success and credibility of this organisation will be determined not only by meeting standards but also by taking action against those who do not comply.
FPJ: Given all that the government has done, what else would you hope to see from them in the coming year?
Sachin Jain: For me, both short-term and long-term objectives are important. In the long term, I believe the direction laid out by the Prime Minister through Vision 2047 and "Viksit Bharat" is crucial. Our role in the gold industry is to collaborate with the government to define what gold’s role will be by 2047 and work backward to achieve those goals.
We need to outline a clear path for milestones in 2025, 2030, 2035, and 2040 and ensure we align with the government on this vision. We are initiating some work in this area and hope to see results soon.
In the short term, the recent reduction in customs duty is a significant step, and it is now our responsibility to ensure effective implementation. The government has done its part; the onus is on us to perform well.
One immediate area where the government could assist is in the regulation of digital gold. As digital transactions become more prevalent, digital gold has become popular due to its ease of access and affordability. However, it is currently unregulated, which could lead to potential issues, including reputational damage. We hope the government will introduce regulations to legitimise digital gold and protect consumers.
Another important area is the establishment of a spot exchange. Currently, India is a price taker rather than a price maker. We need to work with the government to develop a system where India can set gold prices, rather than merely responding to global rates.
Ultimately, both the government and the industry need to collaborate to improve transparency and regulation. While rules and regulations may seem restrictive, they are essential for sustainable growth and to prevent unethical practices. Without them, the industry cannot progress effectively. As Einstein said, if you continue doing things the way you always have, you’ll keep getting the same results. To achieve better outcomes, we need to adapt and innovate.
FPJ: There seems to be a discrepancy between the CEPA rules, which allow for relatively cheaper imports, and the regular domestic import rules. Do you think these discrepancies will be addressed and resolved?
Sachin Jain: I believe the discrepancies have already been addressed. The recent changes have significantly altered the situation compared to just a few months ago. It seems to be a matter of balancing the adjustments, and I am confident that further fine-tuning will follow. The issue was recognised, and steps have been taken to correct it.
FPJ: India has a significant amount of gold that remains underground. To bring this gold into the mainstream, we need a scheme that incentivises its disclosure and integration. This scheme should ensure that the process is legitimate, not overly penalising for the customer, and avoids tax authorities targeting individuals for undisclosed gold from the past. Is such a scheme part of the ‘Vision 2047’ agenda?
Sachin Jain: Absolutely, you are spot on. Currently, gold primarily comes from mining and a small amount from recycling. However, in the future, gold that is already above ground will become a significant resource in itself, essentially acting as a "big household mine" for India. We need an efficient mechanism to facilitate this gold flow—one that is easy, productive, and systematically managed.
We are actively discussing this with the government, and there are ongoing efforts to develop a solution. This gold is a valuable asset for our country, and its treatment in financial accounts needs to change. Currently, gold is not treated as a capital asset, unlike an iPhone, which depreciates to zero after import. We should start by acknowledging it appropriately on balance sheets as a valuable asset. This recognition would be a positive step toward treating gold with the value it truly holds.
