Kotak Warns of Rising Gold Imports, Sees Bitcoin as Digital Alternative

Veteran banker Uday Kotak has raised concerns about India's rising gold imports, which he believes could reach $88-90 billion in FY27. This would be a significant increase from the $72 billion imported in FY26.

Kotak argues that if Indians could reduce their investments in gold, more capital could go into productive assets such as businesses and infrastructure. He believes that reducing gold imports would help keep money within the country.

Bitcoin has emerged as a digital alternative to gold, with similarities in its limited supply. However, Bitcoin faces volatility and regulatory hurdles in India. To become a viable alternative, Bitcoin needs clearer crypto rules and lower price fluctuations. Currently, the tax policy and lack of clear regulations make it less appealing compared to gold.