GJEPC recently organised a webinar on India’s growing Gold Ecosystem, focusing on the vital role of the India International Bullion Exchange (IIBX). Mr. Ashok Gautam, MD & CEO of IIBX, provided an in-depth presentation on the exchange’s history, features, and its significant contributions to the industry, in a session moderated by Mr. Maulik Shah.

IIBX, which currently operates three vaults in GIFT City and one in Chennai, is expanding its infrastructure to include additional vaults across Special Economic Zones (SEZs). This expansion aims to ensure a seamless gold delivery system across India, with a 24-hour delivery guarantee. The exchange is central to the development of the gold market, offering transparency in pricing and efficient logistics, while working towards creating a unified spot market for gold. The introduction of BGR (for export markets) and EGR (for domestic markets) is set to enhance price discovery and foster a more integrated and efficient gold market in India.

Mr. Gautam shared insights into the upcoming changes for SEZs, where jewellery manufacturers may benefit from relaxed eligibility criteria, thus easing their entry onto the exchange. Additionally, IIBX has seen significant growth in trading volumes, with expectations to surpass 60 tonnes in the current financial year. This is a substantial increase, reflecting the growing role of IIBX in the gold trade, especially in relation to India’s jewellery manufacturing sector.

Drawing comparisons to global benchmarks like China and Turkey, where gold imports are mandated through exchanges, Mr. Gautam highlighted that IIBX’s model could similarly transform India’s gold import system. The exchange also offers hedging products like futures and gold metal loans, although liquidity is gradually improving. IIBX is actively engaging with banks to facilitate the onboarding of new members, further strengthening India’s position as a potential “Price Maker” in the global gold market.