A World Gold Council report projects India could source one-fifth of its gold demand locally by 2047. The initiative includes expanding mining operations and mobilizing household gold wealth to reduce import dependency.
India is working to increase its domestic gold production significantly, aiming to meet up to 20% of its annual demand by 2047. According to a new report titled 'Swarnim Udaan 2047' by the World Gold Council, the country currently produces only about 1.6 tonnes of gold annually, while its total demand typically ranges between 800 and 850 tonnes. To bridge this gap, the government has begun opening up more exploration and mining areas, granting 24 licenses for gold mining over the past decade across eight states, which are estimated to hold approximately 270 tonnes of gold.
Jonnagiri Project Marks Shift in Mining
A major development for the sector is the commencement of operations at the Jonnagiri gold project in Andhra Pradesh, which began production in 2026. This project is notable for being India’s first large-scale private gold mine since independence. Managed by Geomysore Services and backed by Deccan Gold Mines and Thriveni Earthmovers, the project involved an investment of over ₹400 crore. The mine is expected to contribute about one tonne of gold annually, effectively doubling the current national production output. For investors, the success and efficiency of this mine will be a key monitorable to see if larger-scale private investments can become a reliable model for the domestic industry.
Financialization of Household Gold
Beyond mining, the report emphasizes the massive potential of the estimated 31,000 tonnes of gold already held by Indian households. The World Gold Council suggests that by using technology such as tokenization and creating digital ownership frameworks, this dormant wealth could be mobilized into the formal financial system. If successful, this could enhance market liquidity and provide the economy with a more productive way to manage its gold reserves, potentially easing the pressure on the country's balance of payments caused by heavy import requirements.
Policy and Governance Outlook
The World Gold Council has proposed the creation of a National Gold Board to centralize policy coordination, similar to the existing Tea Board of India. This board would be tasked with streamlining regulations and encouraging further investment in mining and manufacturing. While these policy goals are ambitious, the actual impact on the sector will depend on how quickly exploration licenses are converted into active, profitable mines and whether the government can successfully incentivize the transition of household gold into financial assets. Investors should continue to monitor upcoming regulatory announcements regarding the proposed National Gold Board and the pace of new mining site auctions.