WGC Pushes for Strategic Mineral Status for Gold in India
The World Gold Council (WGC) has urged the Indian government to classify gold as a strategic mineral, which would simplify the mining process and reduce import dependence. According to Sachin Jain, regional CEO of India for the WGC, granting strategic mineral status to gold would enable a single-window clearance mechanism, allowing mining companies to obtain approvals from the Centre instead of navigating multiple clearances involving state governments.
Jain said that if gold gets recognized under the strategic mineral list, investors and miners can take a licence from the central ministry and mine in any part of the country under one window of clearance. He emphasized the importance of this move in reducing India's current account deficit and achieving self-reliance.
The WGC has set a target to meet 10-15% of India's annual gold demand through domestic mining by 2047, as outlined in their report 'Swarnim Udaan 2047'. Jain also highlighted the need to monetize India's vast household gold holdings, estimated at around 31,000 tonnes, which is valued at approximately Rs 314.9 lakh crore. Monetizing even 1% of this idle stock annually could substitute gold imports worth Rs 3.1 lakh crore and reduce import dependence.