India, the world’s second-largest gold purchaser, is poised to significantly shape the global economic landscape. Alok Kumar Choudhary, State Bank of India’s Managing Director, stressed India’s gold market impact during the 15th International Gold Economic Forum organized by ASSOCHAM.
Choudhary highlighted India’s potential role in crafting a global economic corridor, pointing out the ongoing relevance of gold in central banks’ reserves, notably the Reserve Bank of India.
Dr. C. Rangarajan, former Economic Advisory Council Chairman to the Prime Minister and ex-RBI Governor, detailed gold’s historical and cultural importance. He emphasized India’s substantial impact on the global gold market, being responsible for a quarter of the world demand.
Rangarajan noted the considerable increase in India’s gold imports, reaching 774 tons in 2022, contributing significantly to the nation’s current account deficit. He also remarked on the reasonable level of import duty on gold in India.
Somasundaram P.R., World Gold Council’s Regional CEO for India, spoke on gold’s role as a portfolio diversifier and risk reducer. He praised India’s advanced use of Hallmark Unique ID (HUID) technology in gold jewelry, setting a benchmark for international markets.
Suvanker Sen, Co-Chairman of the National Council on Commodity Markets at ASSOCHAM, reflected on the Indian consumer’s deep-rooted trust in gold. He linked the growth of India’s economy with the increasing prominence of gold as an asset, mentioning the substantial 25,000 tons of gold within the Indian economy.
S.C. Aggarwal, a senior member of ASSOCHAM’s Managing Committee, discussed gold’s various functions in India, serving as an ornament, status symbol, and investment. He noted the country’s annual requirement of about 800 tons of gold, leading to significant imports and influencing the trade deficit.
These insights from top financial and economic authorities highlight India’s vital position in the global gold market and its potential sway over the world economic framework.
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