Gold Business in Thrissur A Story of Employment and Entrepreneurship

Thrissur, a city in the state of Kerala, India, has a thriving gold business that has been a significant source of employment and entrepreneurship for many years. The city's gold market is one of the largest in the country.

Gold ornaments are a staple in Kerala's culture, and Thrissur's gold business caters to this demand. The city's gold market is known for its wide range of gold products, from traditional jewelry to modern designs.

The gold business in Thrissur has created a significant number of jobs for local residents, from goldsmiths to sales assistants. Many young people in the city have started their own gold businesses, providing a platform for entrepreneurship and economic growth.

Thrissur's connection with gold dates back to the Roman and Arab traders in the lost port city of Muziris in Kodungallur.

The bad days of goldsmiths started with India's Economic liberalisation in the 1990s, which led to the repeal of the Gold Control Act and the introduction of provisions in the Foreign Exchange Regulation Act, 1973. The grant of permission to Non-Resident Indians (NRIs) to bring in up to 10kg of gold on payment of a small duty in foreign exchange was the final blow to the traditional goldsmiths.

Many goldsmiths transitioned into businessmen and wholesale dealers of gold jewellery, but the sector faced an employment problem. As a result, unskilled workers took over the jewellery business in Kerala.

Craftsmen from West Bengal and Orissa were the main attraction in 2000 due to their skills, which briefly changed the dynamics of the industry.

The gold trade in Thrissur was initially dominated by Syrian Christian families who were invited by King Sakthan Thampuran to set up their trades in the city.

Massive GST raids were conducted in Thrissur district of Kerala, resulting in the seizure of 104 kg of unaccounted gold.

Over 700 officials from the State GST department participated in the raids, named Operation Torre del Oro, which was the biggest of its kind in Kerala to date.

The raids were conducted on a tip-off that widespread tax evasion had been done in the gold sector, and 78 jewelleries, manufacturing centres, and wholesale outlets were targeted.

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GST officials seized documents related to unaccounted deals in the last five years, which could help throw light on tax evasion.

The raids concluded on Thursday morning, and officials collected ₹3.40 crore as penalty so far.

The seized gold was displayed at the GST office in Thrissur, showcasing the extent of the tax evasion.

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Government Regulations played a significant role in shaping the gold business in Thrissur. The Indian government's policy changes in 1990 led to a rapid rise in the number of jewellery stores in the city.

The Gold Control Act, enforced in 1990, restricted the sale and holding of gold in personal possession. This led to a shift in the industry, as many families started opening gold jewellery businesses.

The government also granted permission to Non-Resident Indians (NRIs) to bring in up to 5 kg of gold to the country, which was later raised to 10 kg. This created a new market for gold jewellery in Thrissur.

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Here are the key policy changes that affected the gold business in Thrissur:

The System Push played a significant role in shaping the gold jewellery industry in the city. Policy changes made by the Indian government in 1990 led to a rapid rise in the number of jewellery stores.

The Gold Control Act was enforced, restricting the sale and holding of gold in personal possession. This change had a direct impact on the industry.

The government also granted permission to Non-Resident Indians (NRIs) to bring in up to 5 kg (later raised to 10 kg) of gold to the country. This provision opened up new opportunities for the industry.

Provisions were introduced in the Foreign Exchange Regulation Act, 1973, which further influenced the industry.

In October 2024, massive GST raids were conducted in Thrissur, Kerala.

Close to 700 officials from the State GST department participated in the raids, named Operation Torre del Oro.

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About 104 kg of gold was seized, which was found as 'stock difference' during the raids.

The officials have also collected ₹3.40 crore as penalty so far.

Raids were conducted in 78 jewelleries, manufacturing centres, and wholesale outlets in Thrissur.

The raids were conducted on a tip-off that widespread tax evasion had been done in the gold sector.

Documents related to unaccounted deals in the last five years were seized during the raids.

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Thrissur is a city in Kerala, India, where gold dominates the industry and provides a significant source of employment. The city is home to around 3,000 gold ornaments manufacturing units.

Many artisans and workers are employed in these units, with about 40,000-odd people working directly or indirectly in the industry. The artisans craft nearly 85 percent of one tonne gold used per day in Kerala.

A significant number of workers from other states, including West Bengal and Orissa, also find employment in gold manufacturing units in Thrissur.

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The entrepreneurial spirit in Thrissur was seeded by King Sakthan Thampuran in the 18th century. He invited Syrian Christian families known for their business acumen to set up businesses in the city.

Teak, furniture, and gold were among the most common businesses established in Thrissur at that time. Gold has since dominated the other industries, and many gold jewellers in the city still trace their roots back to those early families.

Some of India's largest jewellery companies are headquartered in Thrissur, a testament to the entrepreneurial spirit that has taken root in the city.

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Thrissur city is home to a thriving gold ornaments manufacturing industry, with around 3,000 units employing 40,000 artisans and others.

The industry provides direct and indirect employment to a staggering 200,000 people in the region.

In Kerala, a significant amount of gold is used daily for manufacturing ornaments, with 85 percent of one tonne being crafted by artisans in these units.

About 90 tonnes of gold is used annually in Kerala for this purpose.

There are over 6,000 jewellery shops in Kerala, with most located in Thrissur, according to the Chief patron of the Jewellery Manufacturers' Association, P V Jose.

At least 20,000 workers from West Bengal and Orissa are employed in gold manufacturing units in the region.

Thrissur is home to a thriving gold business, and understanding its geography is key to grasping the industry's dynamics.

The majority of gold ornaments manufacturing units are located within a 25 km radius, mainly centered at Thrissur and its surrounding areas.

Some of the key locations include Thrissur, Cherpu, Perinchery, Chevvur, Ammadam, Avinissery, Nallankara, Velur, Amballur, Vallachira, Kizhakkumpattukara, and Ollur.

These areas are hubs for various sectors, including the gold jewellery manufacturing sector, imitation jewellery manufacturing sector, and synthetic gem-cutting and polishing sector.

Here are the main sectors operating in these areas: