India should localise gold ore refining to save substantive forex and create employment

Establishing gold manufacturing hubs in Special Economic Zones (SEZs), could enhance gold processing, attract investments, and create employment opportunities, according to a report by CareEdge. Despite a 27 per cent rise in gold prices. India saw a 5 per cent increase in consumption to 808.8 tonnes in CY24, according to a report by the World Gold Council.

India faces a significant supply-demand gap in gold, over 80 per cent of India’s gold demand is met by imports. In CY24, it produced only 18 per cent of gold for total consumption. India’s gold industry has the potential to become a key driver of economic growth. India’s gold import is estimated to be ~866 tonnes in CY24 which would be more than 8 per cent of total merchandise imports. By localizing the gold ore refining industry, the country would save a substantial amount of forex, would generate employment opportunities and the tax collection for the government