National News
NITI Aayog’s Dr. Arvind Virmani Commends IIGJ Jaipur’s Skilling Initiatives
Dr. Arvind Virmani, Hon’ble Member, NITI Aayog, visited the GJEPC-run Indian Institute of Gems & Jewellery (IIGJ), Jaipur on 3rd October. Welcomed by IIGJ Jaipur Chairman Sudhir Kothari and Vice Chairman Sanjay Kala, he interacted with students, reviewed courses, and observed the Tarang skilling initiative.
Dr. Virmani also toured the IIGJ Lab, where he was received by Director Shri Anand Rao and CEO Smt. Nirupa Bhatt, and later visited SEZ and EPIP jewellery units, engaging with artisans and exporters. He assured support on issues such as RMS, compliance, SEZ-DTA sales, inter-SEZ transfers, and CSR contributions for skilling, besides raising infrastructure concerns with the state government.
Officials present included Noman Hafiz, Dy. Development Commissioner, Noida SEZ; Pankaj Sharma, Asst. Development Commissioner, Jaipur SEZ; S.G. Kansal, Dy. Commissioner, Customs, Jaipur SEZ; and Subhash Sharma, Jt. Commissioner, DIC, Government of Rajasthan, along with representatives from Industries Department, RIICO, and SEZ Customs.
India’s appetite for borrowing against gold is reshaping the country’s credit landscape. Outstanding gold-backed loans have surged 128% from a year earlier, crossing Rs.4 lakh crore ($48 billion) for the first time, according to data from the Reserve Bank of India. As of Jan. 31, loans secured by gold jewellery stood at Rs.4,00,517 crore, marking one of the fastest expansions in retail credit in recent years.
The boom in gold loans has helped propel overall non-food bank credit growth to 14.4% year-on-year. Personal loans now account for 34.5% of total bank lending, outpacing other segments and underscoring a broader shift toward consumer-driven credit expansion
Gold loans alone contributed roughly 9% of incremental bank credit during the period. Between January 2024 and January 2026, outstanding gold-backed credit rose by nearly Rs.3.1 lakh crore—an increase of about 338% over two years—more than quadrupling the size of the portfolio.
Two factors are driving the surge. First, gold prices have climbed roughly 152% over the past two years, increasing the collateral value of household holdings. Second, regulatory guidance requiring banks to classify loans secured by gold explicitly as gold loans has sharpened reporting and accelerated balance-sheet growth in the segment.
The trend highlights a distinctive feature of India’s financial system: households’ vast stock of physical gold, long viewed primarily as a store of wealth, is increasingly being mobilized as collateral for formal credit.
While personal lending and credit to nonbank financial companies within the services sector continue to expand rapidly, industrial credit remains uneven. Loans to micro, small and medium enterprises are growing steadily, but borrowing by large corporations has stayed relatively muted.
Since March 21, 2025, banks have added Rs.21.8 lakh crore to their non-food loan books, translating into 12% growth for the financial year to date. Yet it is gold—rather than factories or infrastructure—that is emerging as one of the most dynamic engines of India’s current credit cycle.
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