GJEPC recently hosted a webinar on India’s expanding gold ecosystem, highlighting the critical role of the India International Bullion Exchange (IIBX). Mr. Ashok Gautam, MD & CEO of IIBX, gave a detailed presentation on the exchange’s history, characteristics, and key contributions to the industry during a session moderated by Mr. Maulik Shah.
IIBX, which already operates three vaults in GIFT City and one in Chennai, is expanding its infrastructure to include more vaults in Special Economic Zones (SEZs). This development intends to create a streamlined gold delivery system throughout India, with a 24-hour guarantee. The exchange is critical to the growth of the gold market, providing transparency in pricing and efficient logistics while trying to create a single spot market for gold. The adoption of BGR (for export markets) and EGR (for domestic markets) is expected to improve price discovery and promote a more integrated and efficient gold market in India.
Mr. Gautam gave insights into potential improvements for SEZs, including the possibility of eased eligibility criteria for jewellery producers, simplifying their admission into the exchange. Furthermore, IIBX has experienced substantial growth in trade volumes, with estimates of exceeding 60 tons in the current fiscal year. This represents a significant increase, demonstrating IIBX‘s growing involvement in the gold trade, particularly in India’s jewelry manufacturing industry.
Mr. Gautam compared IIBX‘s concept to global benchmarks such as China and Turkey, where gold imports are mandated through exchanges, and argued that it could similarly overhaul India’s gold import system. The market also provides hedging products such as futures and gold metal loans, albeit liquidity is slowly improving. IIBX is aggressively working with banks to expedite the onboarding of new members, bolstering India’s position as a potential “Price Maker” in the global gold market.