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Gold Urged as Strategic Mineral for India
4 Aug
Summary
- Gold classified as strategic mineral to boost domestic mining.
- India's household gold reserves estimated at 31,000 tonnes.
- Monetizing 1% of household gold could save Rs 3.1 lakh crore imports.
The World Gold Council (WGC) is advocating for the Indian government to classify gold as a strategic mineral. This designation aims to stimulate domestic gold mining and diminish the country's reliance on imports. Sachin Jain, WGC's India regional CEO, highlighted that strategic mineral status would enable a unified clearance system, simplifying the process for mining companies.
This initiative is closely tied to India's current account deficit and its ambition for self-sufficiency. By encouraging domestic mining and recognizing gold as strategic, the nation's self-reliance goals can be greatly amplified, according to Jain. The WGC's report, 'Swarnim Udaan 2047,' suggests that 10-15% of India's yearly gold demand should be met through domestic mining by 2047.
India's households possess an estimated 31,000 tonnes of gold, valued at approximately Rs 314.9 lakh crore. Monetizing just 1% of this dormant stock annually could offset gold imports worth Rs 3.1 lakh crore. Streamlining and digitizing gold monetization, especially for bars and coins, could bring substantial idle gold into productive economic use.
