India’s first global gold exchange to be launched today; How it will work - explained

Prime Minister Narendra Modi will launch India’s first global gold exchange on Friday. The India International Bullion Exchange (IIBX) will aim to create a regional bullion hub to allow jewellers to import yellow metal.

The exchange will be based in Gujarat International Finance Tec-City (GIFT) which will be launched today by the Prime Minister during his two-day visit.

The exchange will give an impetus to the financialization of gold in India, said a statement by the International Financial Services Centre (IFSC Authority.

The PM will also lay the foundation stone of the unified regulator International Financial Services Centres Authority's headquarters. He will also launch NSE IFSC-SGX Connect.

Under this system, all orders on Nifty derivatives placed by members of Singapore Exchange Limited (SGX) will be routed to and matched on the NSE-IFSC order matching and trading platform, an official release said.

The Connect platform will deepen liquidity in derivative markets at GIFT-IFSC, it added.

The Prime Minister is also slated to launch several other projects in the poll-bound state. As per the schedule, he will inaugurate a Rs 305 crore milk powder plant of the Sabarkantha District Co-operative Milk Producers' Union (Sabar Dairy) near Himmatnagar. The plant can produce 120 metric tonnes of milk powder per day.

From the stage, Modi will virtually inaugurate Sabar Dairy's three- lakh-litre-per-day milk processing plant and also perform ground-breaking for a cheese plant which would come up at a cost of Rs 600 crore. Sabar Dairy is part of the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), the owner of the Amul brand.

With PTI inputs