WGC Seeks Strategic Mineral Status for Gold to Boost Domestic Mining

The World Gold Council (WGC) has urged the Indian government to classify gold as a strategic mineral, which would simplify mining procedures 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.

Currently, India imports a significant amount of gold, which is affecting its current account deficit. The WGC has estimated that 10-15% of India's annual gold demand should be met through domestic mining by 2047, as stated in their report 'Swarnim Udaan 2047'. To achieve this target, the Council suggests that the government simplify and digitise the gold monetisation framework, particularly for bars and coins.

Jain also highlighted the importance of monetising India's vast household gold holdings to reduce reliance on imports. The WGC estimates that Indian households hold around 31,000 tonnes of gold, including about 20,000 tonnes in jewellery and nearly 6,000 tonnes in bars and coins, valued at approximately Rs 314.9 lakh crore.

The Council is also working on technology and tokenisation infrastructure to make gold more fungible, authentic, and accessible round the clock, separate from its purpose as a store of value compared to digital assets such as cryptocurrencies.