IIBX Fails to Deliver as Trading Volumes Remain Stagnant

The India International Bullion Exchange (IIBX), launched in 2022 at GIFT City, has failed to scale up its trading volumes four years after its inception. The exchange was set up with the goal of helping India influence global gold prices and becoming a price-setter rather than a price-taker.

Despite being one of the world's largest consumers of gold, India relies heavily on international benchmarks due to its massive domestic demand during festival and wedding seasons. However, India is working to shift towards becoming a price-maker through steps such as expanding domestic mining and reforming banking channels for bullion imports.

The IIBX took nearly three years to cross the 100-ton mark in cumulative gold trading, which is a fraction of the roughly 700 tons India imports annually through other channels. The exchange's CEO, Ashok Kumar Gautam, has resigned citing personal reasons, raising questions about its future.