With world gold costs surging to historic highs, Vedanta Chairman and industrialist Anil Agarwal has known as on India to cut back its heavy reliance on imports and revive home gold manufacturing.
Gold has not too long ago crossed $3,600 per ounce in inflation-adjusted phrases, surpassing the January 1980 file and marking its highest-ever degree. Regardless of this unprecedented rally, India continues to import over 99% of its gold, making it one of many world’s largest gold importers.
Agarwal warned that this dependence poses a long-term financial danger and emphasised the urgency for reforms. “Gold has hit file highs greater than 30 occasions this 12 months. Its peak at over USD 3,600 per ounce is the very best ever in inflation-adjusted phrases, beating the earlier file from January 1980,” he famous.
He added, “Sadly, India has spent many years as a significant importer of gold. We should produce gold domestically. It’s in our robust financial curiosity. Whereas new mines will take a number of years to start out manufacturing, we have now dormant mines that may be restarted with personal sector participation.”
Reviving idle gold mines, Agarwal argued, might fast-track India’s journey towards mineral self-reliance, generate large-scale employment, and assist ease the import invoice, particularly as India stays one of many highest world customers of gold.
Vedanta, a number one pure assets firm in India, has been advocating for coverage reforms to unlock the nation’s mining potential, aligning with the federal government’s Atmanirbhar Bharat imaginative and prescient.
India has lengthy struggled with a large gold import invoice, which exerts strain on international trade reserves. Regardless of possessing important untapped gold deposits, home manufacturing has remained low as a result of regulatory hurdles, infrastructure gaps, and previous coverage constraints.
Gold costs have risen as a result of fears of worldwide inflation, financial uncertainty from US commerce disputes, and geopolitical tensions. The World Gold Council notes that falling rates of interest and ongoing uncertainty maintain investor curiosity, notably by way of gold ETFs and OTC transactions. Central financial institution demand stays robust in 2025, although beneath file ranges, whereas US traders are driving ETF purchases. Jewelry demand declined to 341 tonnes in Q2 2025, as excessive costs deter consumers, although pageant season and GST financial savings might increase demand. Central financial institution purchases slowed, with Q2 including 166 tonnes—a 33% drop from Q1—however nonetheless above 2010–2021 averages.
