Following the Indian government’s recent appeal for citizens to postpone gold purchases to protect foreign exchange reserves, the country’s jewellery industry has voiced strong opposition, proposing an alternative strategy. Led by bodies such as the All India Jewellers and Goldsmith Federation (AIJGF), industry leaders are urging the government to focus on mobilising the estimated 25,000 tonnes of "idle gold" held in Indian households rather than suppressing consumer demand. They argue that while the need to manage the current account deficit is critical, curbing sales could lead to a massive economic downturn for a sector that supports nearly 35 million livelihoods, ranging from local artisans to large-scale retailers.

The jewellers have suggested a comprehensive revamp of the existing Gold Monetisation Scheme and the establishment of a dedicated bullion bank to channel dormant gold back into the productive economy. Industry representatives pointed out that for many Indian families, gold is not a discretionary luxury but a vital form of financial security and savings. By creating more effective recycling and lending mechanisms for domestic holdings, they believe the government can achieve its goal of reducing import dependence and saving foreign exchange without jeopardising the heritage-rich jewellery ecosystem or the millions of workers who depend on it for survival.