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Only 2% of India’s gold imports go through exchanges: SEBI
SEBI Executive Director Ram Mohan Rao said only about 17 tonnes of gold were delivered through exchanges last year, against imports of roughly 780 tonnes, meaning barely 2% of fresh gold entered…
The Story in Brief
SEBI Executive Director Ram Mohan Rao said only about 17 tonnes of gold were delivered through exchanges last year, against imports of roughly 780 tonnes, meaning barely 2% of fresh gold entered via the formal market. Speaking at an event on Wednesday, Rao noted that India privately holds an estimated 25,000-30,000 tonnes of gold, with another 4,000 tonnes held by temples. He argued that the country must integrate its physical and financial gold markets to play a bigger role in global price discovery.
Separately, the World Gold Council released the 'Swarna Bharat 2047' report calling for a Gold Board of India to coordinate fractured gold policy. Regional CEO Sachin Jain said consumer spending on gold surged 50% to Rs 1.98 lakh crore in the June quarter even as demand volume fell 6%, with prices up 59% year-on-year. The report recommends boosting domestic mining to meet 10-20% of demand, raising jewellery exports from 100 tonnes to 300-400 tonnes, and financialising household gold through simpler schemes.
The Indian Opinion
The standard narrative casts gold as a drain on India's current account, but the real gap is domestic: the financial system barely touches the metal. SEBI's Rao pointed out that exchange deliveries cover just 2% of imports, while 25,000-30,000 tonnes sit idle in households. The World Gold Council's call for a single Gold Board is sensible, but whether ministries will cede turf is the test. Watch if the government puts teeth behind the IIBX as the sole import gateway.
Sources (2): bfsi.economictimes.indiatimes.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
