India Sits On 32,000 Tonnes of Gold. Why PM Modi Wants It Back In Play

Why in news

Prime Minister Narendra Modi urged citizens to recycle idle household and temple gold to reduce India's gold import bill and improve macroeconomic stability.

Background

India holds an estimated 30,000-35,000 tonnes of gold in households and temples. Gold recycling involves refining old gold into pure 24-karat gold for jewelry and bullion markets.

Facts for Prelims

• FactIndia's estimated idle gold stock: 30,000-35,000 tonnes
• FactGold recycling process: Refining old gold into pure 24-karat gold
• FactPrimary sources of idle gold: Households and temples

For Mains

Q. Discuss how mobilizing domestic gold reserves through recycling can mitigate India's current account deficit and enhance macroeconomic stability.

Dimensions to cover in your answer

• External balance: Reducing reliance on gold imports to stabilize the current account deficit
• Macroeconomic stability: Strengthening foreign exchange reserves by optimizing domestic asset utilization
• Supply chain dynamics: Formalizing the informal gold recycling sector to ensure purity standards

Keywords: Current Account Deficit · Macroeconomic Stability · Asset Mobilization · Import Substitution · Gold Recycling

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