The World Gold Council (WGC) is currently developing a strategic roadmap to outline the role of gold in achieving India’s ‘Viksit Bharat’ (Developed India) goal by 2047, as per Sachin Jain, the Regional CEO of WGC India.
To create this comprehensive document, the WGC has enlisted the expertise of Deloitte and other professionals. This roadmap will not only be a theoretical paper but will offer a detailed plan for the next five years while setting milestones for 2030, 2035, 2040, and finally, 2047.
Post-Trump’s inauguration on January 20, 2025, gold prices have seen a continuous upward trend. By February 28, 2025, gold had reached $2,925.10 per ounce, showcasing a 42% annual return. This surge is attributed to various factors, including Trump’s proposed tariffs on steel and aluminium, leading to fears of a trade war and prompting investors to turn to gold as a safe-haven asset.
The recent weeks have witnessed a significant increase in US gold imports as investors rush to stockpile bullion in anticipation of potential tariff hikes. Moreover, central banks in China and India have been bolstering their gold reserves, contributing to a rise in global demand.
With India being the world’s second-largest consumer of gold, with an annual demand exceeding 700-800 tonnes, the release date of the strategic document remains uncertain. However, Jain emphasizes that it will lay the foundation for the next two decades.
Looking ahead, global gold prices should ideally reflect demand and supply fundamentals rather than external geopolitical and macroeconomic uncertainties, according to Jain. As markets await clarity on US trade policies, interest rate decisions, and geopolitical stability, gold is expected to remain a crucial investment avenue for hedging risks in a volatile global economy.
In addition, Mike Oswin, the Global Head of Market Structure and Innovation at the World Gold Council, suggests that Indian banks should be permitted to treat and count gold as a liquid asset for liquidity coverage ratio purposes. He points out that the inclusion of gold as a high-quality liquid asset under the Basel-3 framework is particularly relevant for India, given the country’s affinity towards gold. This integration could significantly benefit the Indian financial system by reducing the capital requirements associated with gold and making it more accessible for banks to incorporate gold into their operations.
