An industry steering committee that represents the entire gold supply chain will soon draw up a joint paper on the key steps necessary for the successful implementation of an international bullion exchange at the Gujarat International Fin-Tec City (GIFT City) near Ahmedabad, according to media reports.

This was decided at a meeting of the committee held last week at the GIFT City, news agency PTI reported. The meeting was attended by industry leaders from World Gold Council (WGC), exchanges, bullion associations, jewellers' associations, banks, and international vaulting service providers. Officials from GIFT City were also present.

As per the report, the focus of the meeting was on instituting an ecosystem for an organised and transparent trading of bullion.

Sanction for the international bullion exchange within GIFT City was given in the Union Budget presented on February 1, 2020. It is believed that setting up such an exchange will lead to better price discovery of gold, create more jobs and enhance India's position in the global market.

The bullion exchange will also be a further boost to the financial ecosystem developed in GIFT City for international financial services such as banking, insurance, capital markets and the financial technology space, the report notes.

"International bullion exchange is an important element of a vibrant financial hub. For an emerging financial hub like GIFT IFSC, the time is apt to establish the bullion exchange as this will provide impetus to investments and international transactions," GIFT City MD and Group CEO Tapan Ray was quoted as having said.

Ray also reportedly welcomed the fact that implementation has begun jointly by all stakeholders in the value chain and stated that the strategy they layout will be important in realising a world class facility.

Somasundaram P R, MD, WGC, was reported to have described the opportunity to set up an organised bullion trading ecosystem in GIFT City as “a game changer”.