Gold prices remained elevated today (Tuesday, May 12, 2026), with leading jewellery brands reporting upward trends in 22k gold rates across major cities. After Prime Minister Narendra Modi urged citizens to temporarily reduce non-essential gold purchases for the next one year to help ease pressure on India’s foreign exchange reserves and imports, the India Bullion and Jewellers Association (IBJA) called for policy changes to better utilise domestic gold holdings.
IBJA in a social media post on X said, “India’s current Account deficit (#CAD) is linked to the Income Tax Act. Amend the Income Tax Act to allow borrowing and lending of commodities (Gold). Currently a holder of household gold can not lend gold to jewellers of his choice as the Income Tax Act does not permit this. India needs a regulated exchange platform for lending and borrowing of gold similar to equity lending and borrowing which is already permitted.
