The Kerala Gold and Silver Merchants Association (KGSMA) has submitted a comprehensive project report to Chief Minister VD Satheesan, proposing the establishment of a modern jewellery park in the State. According to the latest reports from The Hindu BusinessLine, K. Surendran, KGSMA state president, and S. Abdul Nazar, general secretary, outlined that the proposed project is expected to attract an investment of more than ₹2,000 crore and would require around 30 acres of land. The project aims to transform Kerala's gold jewellery sector into a more organised and technology-driven industry, combining traditional gold jewellery-making skills with modern technology.
Once operational, the jewellery park will bring together a wide range of jewellery industry activities under a single industrial hub. As detailed in the project report, the park will include jewellery manufacturing, design, refining, hallmarking, testing, packaging, logistics and exports. The association estimates that the project will create around 24,000 direct employment opportunities, in addition to a large number of indirect jobs in ancillary industries. The integrated infrastructure is expected to enable Kerala's jewellery industry to compete more effectively in national and international markets and expand its export potential.
The proposed park will include modern design centres, quality-testing and hallmarking facilities, refining and gold-recycling units, training centres, warehousing and logistics facilities, as well as infrastructure to support exports. According to the project report, access to shared modern facilities will help small and medium enterprises in the jewellery sector improve efficiency and competitiveness. The integrated infrastructure is designed to provide common infrastructure and facilities to small and medium-sized jewellery manufacturers and traders, positioning Kerala as a major jewellery-industry hub.
Chief Minister VD Satheesan has assured the association that a meeting of relevant stakeholders would be convened soon to discuss the challenges facing the gold trade sector and explore plans for its future development in detail. As reported by The Hindu BusinessLine, the proposed jewellery park is being viewed by industry representatives as a potential catalyst for strengthening Kerala's gold manufacturing ecosystem, attracting investment and generating new employment opportunities. The Chief Minister's commitment to stakeholder engagement demonstrates the government's seriousness about addressing sector concerns.
The association has urged the Centre to reduce the import duty on gold to a rational level of 6 per cent, citing recent economic challenges. According to reports from The Hindu BusinessLine, a review conducted in the last four months revealed that the anticipated economic benefits have not fully materialised. The high import duty creates a financial incentive for smuggling, while legitimate traders bear the burden of high duties, taxes and compliance costs. The influx of smuggled gold at lower prices poses a serious challenge to the organised jewellery sector, as stated by the association.
