National News
Raids by GST officials are a violation of the rules and the illegal raids should be stopped:AKGSMA
The raids by GST officials in the gold and silver jewellery manufacturing sector are a violation of the rules and the illegal raids should be stopped, said Gold and Silver Merchants Association State President K. Surendran and General Secretary Adv. S. Abdul Nazar. They announced that the constant raids are trying to create tension in the gold trading sector and that they will launch strong protest programs.
The jewellery should be inspected only after it is completed. Manufacturers deliver the finished jewellery to wholesalers and retailers.There are many stages in the manufacture of jewellery. Jewellery is made by combining many components such as wire, plate, balls, etc. Handwork and machine work are done the same way.
Gold is made with some of the softest machine tools.If inexperienced officials pull out gold from the place where the work is being done in the machine, the machine itself will be damaged.There will also be difficulties in recording the weight of the gold.
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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