India is on track to shift from being a price-taker to a price-maker in the global gold market, as domestic mining is projected to supply around 20 percent of the country’s gold demand over the next decade, industry leaders reported on Friday.
During a gems and jewellery conference organized by the Chamber of Commerce of India (CCI), Sachin Jain, Regional CEO for India at the World Gold Council, emphasized that mining will play a crucial role as the nation progresses toward its Viksit Bharat 2047 vision. “In the upcoming decade, about 20 percent of the gold demand will be met by gold mined in India. This will contribute to local perceptions of Indian gold, enhance employment opportunities, and attract foreign investment in the mining sector,” Jain stated.
Currently, India operates as a price-taker in the global gold market primarily due to the lack of significant domestic mining operations and an effective gold banking system, which renders it dependent on the benchmarks set by London’s AM and PM prices. Jain added, “With the Reserve Bank of India (RBI) and the ongoing developments in the banking sector, we anticipate gaining influence as a price-maker as well. Transparency and responsibility will be fundamental to this new system.”
Furthermore, Jain projected that India could evolve into a global jewellery hub within the next two to three years. Sandeep Kohli, CEO of Novel Jewels at the Aditya Birla Group, pointed out that Indian consumers possess 25,000 tonnes of gold, compared to only 800 tonnes held by the government, reflecting a significant disparity at a ratio of 50:1. In contrast, he noted, the Swiss government holds 1,000 tonnes while Swiss consumers possess 200 tonnes.
“Incredible as it is, the consumer demand in India does not dictate the prices consumers pay, despite our status as one of the largest gold consumers,” Kohli remarked during the conference. He described gold as India’s most ancient asset class, deeply entrenched in cultural and emotional traditions.
Kohli also highlighted the issue of transparency, stating that the experience of purchasing gold jewellery is often “filled with anxiety,” unlike other high-value purchases such as cars or smartphones, where price comparisons are simpler. “How can we alleviate that anxiety? This requires not only trust but also a celebration of the purchases consumers make. I believe we are not doing enough in this respect,” he asserted.
Samit Guha, Managing Director and CEO of MMTC PAMP India Pvt Ltd, stressed the need for improved transparency and ethical sourcing standards to compete on a global scale. “To become a global player capable of influencing prices, we need to ensure transparency in our marketing and sourcing processes,” Guha stated.
He commended the Bureau of Indian Standards for its hallmarking and HUID-based tracking systems but called for the adoption of OECD and LBMA guidelines or the establishment of equivalent Indian standards. “The global movement is toward ethical, conflict-free sourcing of gold. If we cannot elevate our standards to this level, participating in the global economy will remain challenging,” he noted.
Additionally, Guha pointed out regulatory constraints, noting that as of now, India is prohibited from exporting 24-carat bullion, a restriction imposed by the RBI around 2012-13. “A review of this restriction is essential if we aim to supply Indian bullion to global exchanges. Otherwise, we will remain limited to operations on the MCX and IIBX,” he concluded.
Published on November 28, 2025
