Many global banks are planning major programs to enter the gold market Make in India trade as the country has become one of the largest and most active industries in spot and online gold trading.
This could indicate a boom in the online gold trade in India. India imports and consumes a large amount of the yellow metal from the world and attracts global gold trading companies. India transported nearly 400 tons of gold in 2008. Precious metals imports and sales appeared to decline in 2009, but analysts predict that India’s precious metals industry will continue to grow rapidly in the coming years.
As a result, the world’s largest banks have released plans for online gold Make in India trade. These companies include HSBC, Scotiabank, Standard Bank and Citibank. The plans of these banks include the launch of gold wholesale and hedging, the import of gold and cooperation with regional Indian banks to sell gold coins and the launch of various precious metal storage systems.
Scotiabank is Canada’s second largest financial institution and is in the final stages of trading and hedging gold and other precious metals such as diamonds, platinum and palladium in India.
If Scotiabank allows it, banks can contact HDFC Bank or even ICICI financial institutions to start trading gold and other precious metals on Indian commodities exchanges. Scotiabank plans to establish a wholly owned subsidiary for gold trading.
Scotiabank currently has branches in major metropolitan areas of India such as New Delhi, Mumbai, Bangalore and Coimbatore. The Canadian bank is now considering upgrading its branch system in India. A Scotiabank official told Commodity Online that they plan to trade commodities in India, saying, “We are targeting gold because gold is the largest investment company. For the Indian people.”
India allows up to 100% automatic foreign investment in the wholesale freight and silver trade and export.
Scotiabank is one of the leading financial institutions in North America. It can be found in 50 countries with more than 2000 branches. India, financial giants such as ICICI and HDFC, as well as India Post, a branch of the Indian government, are aggressively promoting gold trading and selling gold coin products.
Experts say plans by foreign participants such as banks to enter India’s precious metals trade bodes well for the country’s vast precious metals industry. India is the world’s largest importer and consumer of gold. So, it makes sense that the big banks are taking advantage of buying and selling gold online in this country.
With an annual growth rate of about 15%, the Indian gemstone and jewellery industry is one of the fastest growing segments of the Indian economy.
The country is also the world’s largest consumer of gold. Consumes almost 800 tons | Gold accounts for 20% of global gold consumption, nearly 600 tons of which is used for jewellery making.
Make in India trade could also become the largest gold buying and selling center in the world with a target of $16 billion by 2010. The industry has the most experienced workforce to direct the design and manufacture of large quantities of beautiful jewellery at low labour costs.
