India’s vast household gold reserves could become one of the country’s most powerful economic assets if integrated into the formal financial system, according to the World Gold Council’s (WGC) Swarnim Udaan 2047 report. Instead of viewing gold only as an imported commodity, the report recommends treating it as a strategic national asset capable of improving financial resilience, reducing import dependence and supporting India’s long-term economic ambitions.
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The report states that India possesses more than 31,000 tonnes of gold, valued at approximately Rs 314.9 lakh crore (Rs 3.4 trillion) as of 2025. However, most of this gold remains locked inside households and contributes little to productive economic activity. According to the report, mobilising even a small portion of these holdings could deepen financial markets, strengthen liquidity, increase capital formation and reduce the country’s dependence on imported bullion.
India’s Idle Gold Could Become Productive Capital
The report describes household gold as one of India’s largest underutilised economic resources. Instead of importing fresh bullion every year, dormant household gold can be channelled into the formal economy through financial products and recycling mechanisms.
The report proposes building an integrated ecosystem that connects:
- Gold Monetisation Scheme (GMS)
- Gold recycling networks
- Electronic Gold Receipts (EGRs)
- Digital Gold
- Bullion banking
- Gold-backed financial products
According to the report, seamless movement of gold between physical and financial markets would improve liquidity, mobilise dormant assets and transform gold into productive capital supporting India’s economic growth.
Financialisation Could Help Reduce India’s Gold Import Bill
India remains one of the world’s largest gold consumers and relies heavily on imports to meet domestic demand. The report notes that this dependence exposes the country to global price volatility, supply disruptions and foreign exchange outflows.
It argues that expanding domestic sources of gold through financialisation, recycling and mining can reduce reliance on imported bullion while strengthening India’s economic resilience. This approach also aligns with the objectives of Atmanirbhar Bharat and Make in India by creating greater domestic value addition across the gold ecosystem.
Gold Recycling Can Lower Import Dependence
The report identifies recycling as one of the biggest opportunities to reduce gold imports. While India is already among the world’s leading gold recycling markets, only a limited quantity of old jewellery returns to the formal supply chain each year.
The report recommends expanding organised recycling by improving consumer participation, strengthening refinery infrastructure and addressing taxation-related barriers. Higher recycling would increase domestic bullion availability, reduce import requirements and improve refinery utilisation.
Bullion Banking to Become the Backbone of Gold Financialisation
A key recommendation of the report is the development of a globally competitive bullion banking ecosystem.
The proposed system would support:
- Gold-backed savings products
- Gold lending
- Bullion trading
- Digital gold services
- Custody and settlement
- Market liquidity
- Investment products
According to the report, bullion banking would enable gold to circulate more efficiently within the economy while reducing the need for additional imports.
Target to Mobilise 10–15% of Household Gold by 2047
As part of its long-term vision, the report proposes mobilising 10% to 15% of India’s household gold through an integrated bullion banking ecosystem by 2047.
This would help unlock dormant household wealth, support credit creation, increase investment and strengthen economic growth without relying solely on imported bullion.
Gold ETFs and Digital Gold Driving Financialisation
The report highlights growing investor preference for financial gold products over physical holdings.
According to the report:
- Net inflows into Gold ETFs increased from approximately Rs 460 crore in 2022 to more than Rs 43,000 crore in 2025.
- Gold ETF assets under management expanded nearly nine-fold between 2020 and 2025.
The report says this trend reflects rising acceptance of regulated, liquid and investment-oriented gold products, particularly among younger investors.
Policy Reforms Needed to Accelerate Gold Financialisation
The report recommends several policy measures to unlock the full economic potential of gold:
- Strengthen the Gold Monetisation Scheme.
- Resolve GST-related issues affecting Electronic Gold Receipts and recycling.
- Expand organised bullion banking.
- Improve integration between physical and financial gold markets.
- Encourage digital gold adoption.
- Promote responsible gold recycling.
- Develop stronger market infrastructure and trading systems.
The report also recommends establishing a National Gold Board and a Gold Innovation Centre to coordinate policy reforms, drive innovation and accelerate financialisation across the gold value chain.
Gold Financialisation Could Strengthen India’s Economy
The report concludes that deeper gold financialisation can generate multiple economic benefits beyond reducing imports.
According to the report, these include:
- Lower dependence on imported gold.
- Reduced pressure on India’s foreign exchange reserves.
- Greater domestic capital formation.
- Improved financial market liquidity.
- Stronger bullion ecosystem.
- Higher recycling and refining activity.
- Better utilisation of household wealth.
- Increased investment and credit availability.
- Stronger long-term economic resilience.
The report describes financialisation as one of the five strategic pillars that can transform gold from a consumption-driven asset into a key contributor to India’s Viksit Bharat 2047 vision.
Key Highlights
- India holds 31,000+ tonnes of gold worth Rs 314.9 lakh crore.
- WGC recommends integrating GMS, EGRs, digital gold, recycling and bullion banking.
- Mobilising 10–15% of household gold could reduce import dependence.
- Gold ETF investments surged from Rs 460 crore (2022) to Rs 43,000+ crore (2025).
- Financialisation could improve liquidity, capital formation and economic resilience.
Frequently Asked Questions (FAQs)
1. What is gold financialisation?
Gold financialisation means integrating physical gold into the formal financial system through products such as Gold Monetisation Schemes, bullion banking, Electronic Gold Receipts, digital gold and gold-backed investments.
2. How much gold does India currently hold?
According to the WGC report, India held more than 31,000 tonnes of gold worth approximately Rs 314.9 lakh crore (US$3.4 trillion) as of 2025.
3. How can gold financialisation reduce India’s import bill?
By mobilising idle household gold, increasing recycling and expanding bullion banking, India can meet more domestic demand from existing gold instead of importing additional bullion.
4. What household gold mobilisation target does the report propose?
The report recommends mobilising 10–15% of India’s household gold through an integrated bullion banking ecosystem by 2047.
5. Which institutions does the report recommend creating?
The report proposes establishing a National Gold Board and a Gold Innovation Centre to coordinate reforms, improve market infrastructure and promote innovation across India’s gold ecosystem.
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