India eyes price-maker tag in global gold market

India is poised to transition from a price-taker to a price-maker in the global gold market, with domestic mining expected to meet approximately 20 per cent of the country’s demand over the next decade, industry leaders said on Friday.

Speaking at a gems and jewellery conference organised by the Chamber of Commerce of India (CCI), Sachin Jain, Regional CEO for India at the World Gold Council, said mining would be a critical component as the country moves towards Viksit Bharat 2047.

“Over the next decade about 20 per cent of the demand of gold will be furnished by our own gold mined in India. There will be a sense about Indian gold, employment, and foreign investment coming to the mining sector,” Jain said.

He said India currently remains a price-taker due to the absence of significant domestic mining and a gold banking system, which makes it dependent on London's AM and PM benchmark prices.

“With RBI and the evolution around the banking system, we will have influence on being a price-maker as well. Transparency and responsibility will not be optional but will be the basis of the system,” he added.

Jain also expressed confidence that India would emerge as a global jewellery hub within the next two to three years. Sandeep Kohli, CEO of Novel Jewels, Aditya Birla Group, highlighted that Indian consumers hold 25,000 tonnes of gold compared to the government's 800 tonnes -- a ratio of 50:1. In contrast, the Swiss government holds 1,000 tonnes while consumers hold 200 tonnes, he said.

“What I find absolutely astonishing is that consumer demand in India is not defining the price consumers pay, despite being amongst the largest consumers of gold,” Kohli said at the conference.