India’s growth story, and its challenges -- in numbers

The demand for gold among Indian consumers remains stable despite recent price hikes. While gold demand in the June quarter decreased by 6% year-on-year, consumer spending on gold surged by 50% to Rs 1.98 lakh crore due to elevated prices. Gold prices moderated in Q2, but remained 59% higher than a year ago. The government imposed a higher import duty of 15% and urged consumers to limit gold purchases to curb imports.

The World Gold Council, a global body representing leading gold miners, has released a report titled 'Swarna Bharat 2047' to position gold as a growth driver for India's economy. The report outlines several strategies for India to increase its gold consumption and production, potentially meeting 10-20% of its demand through local mining and exports rising to 300-400 tonnes over the next decade. The report also emphasizes the need to financialize household gold and expand gold's role in technology and cultural tourism.

A key recommendation is the establishment of a Gold Board of India to streamline policy-making and coordinate efforts across various ministries. The board would function under the Department of Economic Affairs in the Finance Ministry, with both government and industry representation. Additionally, the report calls for expanding the role of Indian banks in gold trading, custody, and the Gold Monetisation Scheme, as well as fostering technological advancements in gold manufacturing and exports.