Recent advancements in the gold processing and manufacturing industry have paved the way for futuristic production possibilities, targeting a substantial portion of gold demand by 2047. According to the industry body PHDCCI, domestic gold production by existing and new players is set to expand to 100 tonnes by 2030, which will significantly bolster foreign exchange reserves, improve the trade balance, and contribute to GDP.
Sanjeev Agrawal, President of the PHD Chamber of Commerce and Industry, emphasized that the Indian gold processing and manufacturing industry is on the cusp of significant growth and transformation. This growth promises extensive economic benefits and supports the Indian economy on a higher growth trajectory toward “Viksit Bharat by 2047.”
A study by the PHD Research Bureau, PHDCCI, titled “Framework to Strengthen India’s Gold Processing Industry: A Step in Building Gold Self-Reliance,” highlights that the industry is expected to attract substantial investments, increasing from Rs 1,000 crore in 2023 to Rs 15,000 crore by 2030. Agrawal noted that these investments would boost employment from the current 3,000 workers to 25,000 by 2030. This surge in employment is anticipated to have a positive ripple effect on the economy, improving livelihoods and creating a virtuous cycle of economic growth.
India has a significant domestic demand for gold, accounting for 17% of the total world gold demand, which is largely met through imports. Agrawal pointed out that with domestic gold production expected to rise from 16 tonnes to 100 tonnes by 2030, net imports would decrease significantly. By balancing the value of imported finished gold with that of imported raw gold, this could save USD 1.2 billion in foreign exchange reserves and improve the trade balance.
Total gold supply is projected to increase from the current 857 tonnes to 1,000 tonnes by 2030, driven by an average annual growth rate of 2.4%. This boost in domestic gold production is expected to enhance economic self-sufficiency and contribute to GDP, with the share of gold production in GDP increasing from 0.04% currently to 0.1% by 2030.