India Considers Strategic Status for Gold Amid Import Reliance
The World Gold Council has petitioned the Indian government to designate gold as a strategic mineral. This move aims to boost domestic production and reduce India's significant reliance on gold imports.
The WGC believes that increasing local output is crucial for long-term financial stability, particularly in light of India's massive current account deficit. The council estimates that domestic mining could meet 10% to 15% of the nation's annual gold demand by 2047, as outlined in its report 'Swarnim Udaan 2047'.
The proposal also includes digitizing and simplifying the monetization process for the estimated 31,000 tonnes of gold held by Indian households. This could potentially replace a significant portion of import demand with domestic supply.