India sitting on ₹315 lakh crore gold, mobilising small share could unlock economic growth: Report

India is sitting on an estimated 31,000 tonnes of gold worth about ₹314.9 lakh crore (USD 3.4 trillion), and mobilising even a small share of these holdings could unlock significant economic value, according to a World Gold Council report.

"Mobilising even a small share of these holdings could unlock significant economic value by deepening financial markets, enhancing liquidity and strengthening capital formation," it said.

According to the report, the next phase of gold financialisation should be driven by an integrated ecosystem connecting the Gold Monetisation Scheme (GMS), recycling networks, Electronic Gold Receipts (EGRs), digital gold, bullion banking and gold-backed financial products.

Such interoperability, it said, would enable seamless movement of gold across physical and financial markets, enhance liquidity and transform dormant household holdings into productive economic assets while accelerating participation across the value chain.

The report envisages mobilising 10-15% of household gold through an integrated bullion banking ecosystem to support investment and economic growth by 2047.

It said India should move beyond viewing gold merely as a consumer product and instead recognise it as a strategic national asset capable of advancing the country's wider economic ambitions.

"Strengthening domestic mining, expanding recycling, deepening financialisation, enhancing manufacturing competitiveness and integrating more effectively with global markets can collectively enable gold to play a much larger role in India’s growth story," said Sachin Jain, Regional CEO, India, World Gold Council.

Highlighting the scale of the opportunity, the report noted that India is uniquely positioned with one of the world's largest household gold holdings, a globally recognised jewellery manufacturing ecosystem, strong craftsmanship, growing digital capabilities and one of the world's largest consumer markets.

These advantages, it said, provide a strong foundation to create greater value across manufacturing, exports, financial markets and innovation.