Check out the latest Gold, Silver prices in MCX, International Market, Sarafa and your city on our new website – https://goldpricetodaynews.com/

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.

Gold Price Today Digital Media Network
Facebook Page (129K Followers)- https://www.facebook.com/Goldsilverpricetoday
Facebook group of (80K Jewellers Member – Sunar Jewellers Ekta – https://www.facebook.com/groups/goldsilverpricenews
Website (100000 Users)- https://ohq.plp.mybluehostin.me/
Instagram (51K Followers)- https://www.instagram.com/goldpricetodaynews/
X- https://twitter.com/today_gold
Telegram Group (2000 Members)- https://telegram.me/goldsilverprice
Magazine (20000 Digital Subscribers): Gold Silver News For Magazine Subscription Contact +919111435279
Whatsapp News(25000 Members): +918448469588

Check out the latest Gold, Silver prices in MCX, International Market, Sarafa and your city on our new website – https://goldpricetodaynews.com/

According to the report, India already occupies a central position in the global gold ecosystem, and its importance is expected to grow further as global supply chains evolve, financial markets deepen and advanced technologies expand. The WGC believes that coordinated policy action and institutional reforms can unlock greater value across the country’s gold ecosystem while promoting responsible domestic value creation, exports and innovation.

The report sets out five interconnected pillars that together aim to transform India’s gold sector into a more formal, resilient and globally competitive economy.

1. Promoting “Mine in India”

The first pillar focuses on increasing India’s domestic gold production with the objective of meeting 10-15% of the country’s annual gold demand through domestic mining by 2047. To achieve this, the report recommends recognising gold as a “Strategic Mineral” under the MMDR Act, strengthening incentives for early-stage exploration, streamlining regulatory clearances, developing updated and investor-ready geological data repositories, adopting advanced exploration technologies and building a skilled workforce for the mining sector.

2. Making India “Jeweller to the World”

The second pillar envisions India becoming the world’s number one gold jewellery exporter by 2047. The report says this will require expanding beyond traditional diaspora markets by diversifying export destinations, developing market-specific jewellery designs, strengthening the “Made in India” brand, modernising jewellery manufacturing clusters and enhancing artisan skills.

Among the proposed initiatives are the Karigar Connect programme to modernise artisan clusters, the Gold Jewellery Technology Upgradation Fund, and international promotional platforms such as India Gold Fashion Week to showcase Indian jewellery globally.

3. Enabling Greater Financialisation of Gold

The third reform focuses on bringing more household gold into the formal financial system. The WGC proposes mobilising 10-15% of India’s household gold holdings through active participation of banks and reforms in bullion banking.

The report estimates that Indian households currently own around 31,000 tonnes of gold, valued at approximately Rs 314.9 lakh crore (3.4 trillion dollar). It notes that monetising even 1% of this idle stock every year could replace gold imports worth nearly Rs 3.1 lakh crore (34 billion dollar) annually, reducing import dependence while unlocking significant domestic economic value.

4. Reimagining Gold Jewellery for the Modern Consumer

Recognising changing consumer preferences, the report recommends redesigning India’s jewellery ecosystem to better serve the country’s 380 million-plus and growing Gen Z population.

The roadmap calls for wider adoption of phygital retail experiences, contemporary jewellery designs, stronger hallmarking standards, enhanced traceability across the supply chain and positioning gold jewellery as an everyday lifestyle product rather than an occasional purchase.

5. Unlocking Gold’s Potential as a Strategic National Asset and Mineral

The fifth pillar proposes expanding gold’s role beyond investment and jewellery by recognising it as a strategic national asset and mineral that can support India’s long-term industrial and technological ambitions.

According to the report, gold can contribute to advanced manufacturing, economic resilience, industrial competitiveness and sustainable development. It highlights that electronics account for nearly 80% of global industrial gold demand, while India’s semiconductor market is projected to reach 750 billion dollar by 2047. The report says gold will play an increasingly important role in sectors such as electronics, semiconductors, biotechnology, diagnostics, aerospace, artificial intelligence and quantum technologies.

Institutional Reforms to Support Implementation

To translate the vision into action, the WGC proposes establishing a National Gold Board, in line with the NITI Aayog-Watal Committee (2018) recommendations. The Board would function as the apex platform to coordinate stakeholders, align policies, rationalise regulations, strengthen market infrastructure and monitor implementation of reforms.

The report also recommends creating a Gold Innovation Centre to promote research, technology adoption, capability building, digitalisation, sustainability and market development across the gold value chain. In addition, it calls for the formation of a multi-stakeholder task force to drive the implementation roadmap.

The World Gold Council believes that these five strategic pillars, supported by strong institutional coordination and long-term policy reforms, can help unlock the full economic potential of India’s gold industry and position the country as a globally competitive gold economy by 2047.

FAQs

1. What is Swarnim Udaan 2047?

Swarnim Udaan 2047 is a strategic vision document released by the World Gold Council in collaboration with Monitor Deloitte. It outlines a roadmap to strengthen India’s gold ecosystem and support the country’s goal of becoming a developed economy by 2047.

2. Why does the WGC want greater financialisation of gold?

The report estimates Indian households hold around 31,000 tonnes of gold. Bringing a portion of this idle gold into the formal financial system could reduce import dependence, improve liquidity and generate significant economic value.

3. What institutional reforms has the World Gold Council proposed?

The WGC recommends establishing a National Gold Board, creating a Gold Innovation Centre, and forming a multi-stakeholder task force to coordinate policy reforms, promote innovation, strengthen market infrastructure and oversee implementation.

4. How can Swarnim Udaan 2047 benefit India’s economy?

According to the report, the proposed reforms could boost domestic mining, expand jewellery exports, strengthen manufacturing, support high-tech industries such as semiconductors and electronics, reduce gold import dependence, and help position India as a globally competitive gold economy by 2047.

Gold Price Today Digital Media Network
Facebook Page (129K Followers)- https://www.facebook.com/Goldsilverpricetoday
Facebook group of (80K Jewellers Member – Sunar Jewellers Ekta – https://www.facebook.com/groups/goldsilverpricenews
Website (100000 Users)- https://ohq.plp.mybluehostin.me/
Instagram (51K Followers)- https://www.instagram.com/goldpricetodaynews/
X- https://twitter.com/today_gold
Telegram Group (2000 Members)- https://telegram.me/goldsilverprice
Magazine (20000 Digital Subscribers): Gold Silver News For Magazine Subscription Contact +919111435279
Whatsapp News(25000 Members): +918448469588