80:20 rule
The 80:20 rule was an import restriction introduced to address the widening Indian current account deficit. Under the rule, importers were required to re-export 20% of their gold imports in the form of jewellery. The rule came into effect on 22 July 2013 and removed on 28 November 2014.

Akshaya Tritiya
One of the most auspicious days in both the Hindu and Jain calendars, falling between late April and early May on the third day of the bright half of Vaishakha. The day is believed to bring good luck and prosperity - word ‘Akshaya’ means ‘never diminishing’ in Sanskrit.

The process of testing an item to determine its precious metal composition.

Commodity Transaction Tax
Commodities Transaction Tax (CTT) was introduced by Finance Minister P Chidambaram in the Union Budget 2013-14. Commodities Transaction Tax (CTT) was levied on future contracts of non-agricultural commodities at 0.01%.

Countervailing Duty (CVD)
CVD is levied on imports of specific goods listed by the government as per its Foreign Trade Policy. The CVD is equal to the central excise duty and is levied on imported products which are then fabricated in India. The CVD is based on the aggregated value of goods including the Basic Customs Duty (BCD).

Dabba Trading
Dabba trading is prevalent in the equities and commodities markets. It is an illegal practice where a broker executes a customer’s trade without executing it in the stock/commodities exchange. The broker only uses the price of commodities trading on the exchange as a reference point and executes the trade on its own terminal rather than in a recognised exchange.

The ‘festival of lights celebrated’ in the Hindu, Sikh and Jain religions. This 3-5 day festival coincides with the new moon between the Hindu months of Aswina and Kartika (usually falling in October or November in the Gregorian calendar) and is celebrated as the Hindu New Year.

Domestic Tariff Area
Domestic Tariff Areas (DTAs) refer to an area within India that is outside the Special Economic Zones (SEZs), Export Oriented Units (EOU), Electronics Hardware Technology Parks (EHTP), Software Technology Park (STP) and Bio-Technology Park (BTP). The DTA also covers any jurisdiction that is not under the jurisdiction of a customs bonded area.

Metal recovered from an ore body will be formed into unrefined bars known as “doré”. These unrefined bars will contain gold, as well other metals (such as silver or copper) which have been extracted. The proportions of each metal will vary between bars, although gold will generally account for 60-90% of the bar. The bars are then sent to a refinery to separate each pure metal. []

Excise Free Zone
The government created Excise Free Zones, which benefit from excise duty holidays, to promote investment and manufacturing activity in some of the more remote and underdeveloped parts of the country.

Export Oriented Unit (EOU)
EOUs are schemes designed to provide an internationally competitive duty environment. Companies operating out of the EOUs are termed foreign entities and are exempt from various taxes depending on the profile of the unit.

The Gem & Jewellery Export Promotion Council was set up by the Ministry of Commerce in 1966. The GJEPC represents a large number of exporters in India’s gem and jewellery industry, and undertakes numerous promotional activities, including organising the India International Jewellery Show (IIJS). []

Gold Control Act
The Gold Control Act, 1968 was passed to control private ownership and sale of gold by the Indian populace. The Act was repealed in 1990.

Gold Deposit Scheme
The Gold Deposit Scheme, launched by the Indian government in the 1990s, allowed individuals to receive interest in return for gold deposited at a bank. The interest was exempt from capital gains, wealth and income taxes.

Gold loan
A means of raising funds using gold as collateral to secure the financing. Gold loans are provided by banks and non-bank financial companies in the formal sector, and by money lenders and pawnbrokers in the informal sector.

Gold Monetisation
The Gold Monetisation Scheme is a gold savings account which will earn interest on the gold that is deposited. Gold can be deposited in any physical form – jewellery, coins or bars. Interest earned will be based on the gold weight and also the appreciation of the metal value. []

A hallmark is an official mark guaranteeing the purity of the precious metal. Hallmarks will vary from country to country but will usually provide information including who made the item, the guaranteed level of fineness, the year in which it was made and the mark of the assaying/hallmarking entity.

Indian Gold Coin
Launched in November 2015 by Prime Minister Modi, the Indian Gold Coin is the first ever official gold coin produced by the government of India and the only coin in the country with a BIS hallmark. []

Karigar is the Hindi word for ‘artisan’ or ‘craftsman’ and refers to the skilled workers who craft handmade gold jewellery for manufacturers and retailers. Karigars are paid per piece of jewellery that they make.

The London Bullion Market Association (LBMA) is an international trade association, with a global membership, which represents the London market for gold and silver bullion. LBMA accreditation requires a refiner to satisfy requirements regarding ownership, net worth and operating history. They must have produced at least 10 tonnes of refined gold annually for at least 3 years. And they must meet, and maintain, strict criteria for assaying accuracy and bar quality.

London Good Delivery Bars
These are large gold bars which meet the London Good Delivery Standard (the specification to which a gold bar must conform in order to be acceptable on a certain market or exchange). Good delivery for the London Bullion Market is the internationally accredited good delivery standard. A good delivery bar for London should weigh between 350 and 430 ounces (gold content) of a minimum purity of 99.5% (two nines five). Further specifications can be obtained from the London Bullion Markets Association (LBMA).

Make In India
Make in India was an initiative launched by Prime Minister Modi in September 2014. Part of a broader set of initiatives, it is designed to create employment opportunities, boost skill development and improve the ease of doing business in India, with the ultimate aim of transforming India into a global design and manufacturing hub.

Metro, Tier 1 and Tier 2 cities
The 2001 Census used the following definitions:

  • Metro: cities with a population of 1,000,000 and above
  • Tier 1: cities with a population of between 100,000 and 999,999
  • Tier 2: cities with a population of between 50,000 and 99,999.

Non-Bank Financial Company (NBFC)
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged lending, investment in financial products, insurance, leasing etc. (excluding any company whose principal business activity is agriculture, industry, purchase or sale of any goods - other than securities - or sale/purchase/construction of immovable property). A non-banking institution which is a company and whose principal business is receiving deposits under any scheme is also a non-banking financial company.

Non-Resident Indian (NRI)
A citizen of India, or a person of Indian origin, who is resident in India for less than 6 months during a fiscal year. [] 

Open General License (OGL)
A type of export or import license issued by the government of India to trading houses. These licenses benefit from minimal restrictions, which therefore help to promote the free movement of goods.

Ore grade
The amount of gold contained in an ore body is described as its “grade” and is commonly quoted in grammes per tonne. (Grades can vary enormously between deposits, and even within the same ore body.) For a deposit with a grade of 3 grammes/tonne, over 10 tonnes of ore would need to be extracted to produce a single ounce of pure gold (31.1 grammes).

Organised manufacture sector
The organised manufacturing sector is characterised by manufacturers with large manufacturing facilities and a strong brand and which adhere to standard accounting practices.

Organised retail sector
The organised retail sector is characterised by national and regional jewellery chains, which have a clear brand and which adhere to standard accounting practices.

Recycling refers to the sale by individuals of their privately-held gold back into the market, to be refined back into bullion. This specifically refers to gold sold for cash. It does not include gold traded-in for other gold products (for example, by consumers at jewellery stores) or process scrap (working gold that never becomes part of a fabricated product but instead returns as scrap to a refiner). For more detail on recycling, refer to The Ups and Downs of Gold Recycling, Boston Consulting Group and World Gold Council, March 2015 (

Mining companies will estimate how much gold remains at each mining project they operate. These can be split into two categories: reserves (gold that is economic to mine at the prevailing gold price); and resources (gold that will potentially be economic to mine, subject to further investigation or at a difference price level).

Mining companies will estimate how much gold remains at each mining project they operate. These can be split into two categories: reserves (gold that is economic to mine at the prevailing gold price); and resources (gold that will potentially be economic to mine, subject to further investigation or at a difference price level).

Round tripping
Round-tripping refers to the act of exporting gold (jewellery, bars or coins) with the sole purpose of melting it down before re-importing it back to the original exporting country. The motives for this activity can vary, although in India it is commonly used a means of artificially inflating trading volumes as a means of securing cheaper financing.

Special Economic Zone
India’s government introduced the Special Economic Zones policy in 2000, providing eligible areas with tax and other business incentives to encourage foreign and domestic investment in India.

Star Trading House/Premier Trading House
As part of its foreign trade policy, the government recognises established exporters as export houses. The category of export house will depend on the value of the company’s export earnings during the current and previous two years. The status of the trading house is dependent on the value of its export earnings []

Systematic Investment Plan (SIP)
A SIP is a means of accumulating gold through a series of regular, fixed monthly payments. In this way, investors can accumulate gold in small increments without making a considerable upfront payment.

Unorganised manufacturing sector
The unorganised manufacturing sector is characterised by small, independent workshops, operating predominantly on a cash basis, which employ karigars to manufacture handmade jewellery.

Unorganised retail sector
The unorganised retail sector is characterised by smaller, often family-run, standalone outlets.

Upper Middle Class
There is no official definition of upper middle class for India, but in broad terms would refer to higher status, higher earning members of the middle class.

Value addition norms
Value addition is defined as the difference in value between the raw material input and the value of the finished product; i.e. it is the minimum level of added value – set by the government – that a jeweller must add to the cost of the raw material input.