India's households hold more gold than the top 10 largest gold reserves in the world, Assocham advises including household gold in the economy
New Delhi, April 11. Discussions about the country's economy often highlight gold reserves.
According to the World Gold Council, India currently has the eighth-largest gold reserve in the world. The Reserve Bank of India (RBI) holds a stock of 880 tons of gold. However, the Associated Chambers of Commerce and Industry of India (Assocham) states that the gold held by Indian citizens in their homes exceeds the total gold reserves of the top 10 countries with the largest gold reserves.
A report released by Assocham estimates the value of gold stored in Indian households to be around five lakh crore dollars, making it one of the largest reserves of financial assets held by households or individuals. If such a large quantity of gold were to be invested in the country's economy, it could significantly strengthen the Indian economy. The report also indicates that the value of gold held by Indian families exceeds the annual gross domestic product (GDP) of almost all economies in the world, except for the United States and China.
According to the report, if even two percent of the gold reserves held in homes were included in the economy through financial means each year, it could lead to an increase of 7.5 lakh crore dollars in India's GDP by 2047. Currently, various estimates suggest that India's GDP is expected to reach 34 lakh crore dollars by 2047. If two percent of the gold held in homes contributes annually, India's GDP could surpass 40 lakh crore dollars.
The report notes that most of the gold held in Indian households is in physical form, limiting its utility in the economy. To accelerate the country's economic growth, Assocham emphasizes the need to formally invest household gold in various sectors of the economy, such as manufacturing, infrastructure, and agriculture.
The report suggests that effective use of gold monetization schemes, gold loan schemes, or gold-linked savings instruments could facilitate the inclusion of household gold in the formal economic system. This way, gold that is considered almost unusable in the economy could gradually contribute to the country's economic growth through financial means like gold loans, gold savings, and gold monetization.
Publish with Us: Wish to feature your personal or organizational milestones, success stories, or press releases in Loktej English? Contact us, and we will guide you through our publication process.
Feedback & Corrections: We strive for accuracy. If you spot an error, have feedback, or object to the content of this article/press release, please notify us at loktejonline [at] gmail [dot] com. We will review the matter and rectify it at the earliest.
