Gold refining gains ground as prices surge

Subject: Polity

Section: Parliament

India has emerged as the world’s fourth-largest gold recycler with the organized refining capacity increasing to an estimated 1,800 tonnes against 300 tonnes in 2013.
The informal sector accounts for an additional 300-500 tonnes.
The scale of unorganized refining has fallen as the government has tightened pollution regulations resulting in the closure of many local melting shops.
India accounts for about eight per cent of the global scrap supply.
The import duty differential on dore (unrefined gold) over refined bullion has spurred the growth of organised refining in India.
The share of gold dore in overall imports has increased from seven per cent in 2013 to 22 per cent in 2021.
The expansion of the Indian refining sector has slowed in recent years as the goods and services tax (GST) eliminated the advantage enjoyed by EFZs (excise free zone) and led to a cutback in new capacity within these zones.