Domestic gold production by existing and new players will expand to 100 tonnes by 2030, significantly increasing foreign exchange reserves, improving the trade balance and contributing to GDP, industry body PHDCCI (PHD Chamber of Commerce and Industry) said. ).
"The Indian gold processing and manufacturing industry is poised for substantial growth and transformation, promising broad economic benefits and supporting the Indian economy on a higher growth path towards Viksit Bharat' by 2047," said Sanjeev Agrawal, Chairman of PHDCCI.
India's gold processing and manufacturing industry is expected to see substantial investments, rising from Rs 1,000 crore in 2023 to Rs 15,000 crore in 2030, he added.
The job creation resulting from this will have a positive ripple effect on the economy, improving livelihoods and creating a virtuous cycle of economic growth.
India has a large domestic demand for gold, which accounts for 17 per cent of the total global gold demand and is largely met by imports.
"Supported by the expansion of domestic gold production from the current level of 16 tonnes to 100 tonnes by 2030, net imports will decline significantly," Agrawal said.
Adjusting the value of imported finished gold to that of imported raw gold will likely save $1.2 billion in foreign exchange reserves and improve the trade balance, according to the industry chamber.
Total gold supply is expected to rise from the current level of 857 tonnes to 1,000 tonnes by 2030, driven by an (average) annual growth rate of 2.4 percent.
"This increase in domestic gold will improve economic self-sufficiency and contribute to GDP as the share of gold production in GDP will increase from 0.04 per cent currently to 0.1 per cent in 2030," Agrawal said.
The GST paid on gold is expected to increase from Rs 300 crore to Rs 2,250 crore by 2030, while the tax waived by the government is expected to increase from Rs 285 crore in 2023 to Rs 1,820 crore by 2030, reflecting the expanding scale of the domestic market. gold industry, the industry chamber said.
"The Indian gold processing and manufacturing industry is poised for substantial growth and transformation, promising broad economic benefits and supporting the Indian economy on a higher growth path towards Viksit Bharat' by 2047," said Sanjeev Agrawal, Chairman of PHDCCI.
India's gold processing and manufacturing industry is expected to see substantial investments, rising from Rs 1,000 crore in 2023 to Rs 15,000 crore in 2030, he added.
The job creation resulting from this will have a positive ripple effect on the economy, improving livelihoods and creating a virtuous cycle of economic growth.
India has a large domestic demand for gold, which accounts for 17 per cent of the total global gold demand and is largely met by imports.
"Supported by the expansion of domestic gold production from the current level of 16 tonnes to 100 tonnes by 2030, net imports will decline significantly," Agrawal said.
Adjusting the value of imported finished gold to that of imported raw gold will likely save $1.2 billion in foreign exchange reserves and improve the trade balance, according to the industry chamber.
Total gold supply is expected to rise from the current level of 857 tonnes to 1,000 tonnes by 2030, driven by an (average) annual growth rate of 2.4 percent.
"This increase in domestic gold will improve economic self-sufficiency and contribute to GDP as the share of gold production in GDP will increase from 0.04 per cent currently to 0.1 per cent in 2030," Agrawal said.
The GST paid on gold is expected to increase from Rs 300 crore to Rs 2,250 crore by 2030, while the tax waived by the government is expected to increase from Rs 285 crore in 2023 to Rs 1,820 crore by 2030, reflecting the expanding scale of the domestic market. gold industry, the industry chamber said.
