With gold prices rallying towards the $3,000 per ounce mark, industrialist Anil Agarwal has sounded the alarm—India must revive its dormant gold mining sector, reported The Economic Times.
Taking to X, the Vedanta chairman highlighted gold’s traditional safe-haven appeal and called for the country to tap into its own reserves instead of continuing its heavy reliance on imports.
“This is the best time for India to revive and revitalize its existing gold assets,” Agarwal stated, stressing that India imports nearly 800 tonnes of gold annually, while domestic production stands at a mere 1 tonne, quoted as saying by The Economic Times.
He believes investor interest in local mining will surge as global prices climb, making gold extraction a more attractive and feasible venture with shorter timelines compared to new projects.
For decades, India’s gold obsession has come at a cost—an ever-growing import bill that strains foreign exchange reserves.
While the country is believed to have significant untapped gold deposits, production has remained minimal due to regulatory challenges, outdated policies, and infrastructure bottlenecks.
Agarwal’s push aligns with broader government efforts to boost domestic mining and curb reliance on foreign gold supplies. However, whether India can truly unlock its gold reserves will depend on policy reforms, investments in the sector, and regulatory clarity.
Gold prices are soaring, driven by economic uncertainty and geopolitical tensions. On Monday (24 March), bullion prices edged higher as fears over US President Donald Trump’s proposed reciprocal tariffs rattled markets.
Adding to the momentum, the possibility of interest rate cuts by the Federal Reserve has further strengthened gold’s safe-haven appeal.
Meanwhile, the Reserve Bank of India (RBI) has been aggressively increasing its gold reserves, adding 72.6 tonnes in 2024—a fourfold jump from the previous year.
The surge in buying comes amid rising currency volatility following Trump’s re-election, reinforcing gold’s status as a secure hedge against financial instability.