1 year ago
India Needs New Bullion Policies Amid Geopolitical Risks
India should rethink how it gets, stores, and trades gold because of global problems.
India buys almost all its gold from other countries, which could be a problem during conflicts or trade restrictions.
The author suggests India should get gold from different places, store it safely, and trade it using its own rules.
This means creating a special gold reserve, encouraging people to invest in gold, and using its own gold exchange.
The goal is to protect India's economy and make sure it can handle any global issues.
India's dependence on gold imports makes it vulnerable to geopolitical risks.
The country imports most of its gold from countries like Switzerland and the UAE.
India should diversify its import sources and consider strategic agreements for gold.
Establishing a Strategic Bullion Reserve, separate from monetary reserves, is proposed.
Developing a bullion exchange and rupee-denominated pricing would improve autonomy.
- Who
- India, gold consumers, policymakers, and the author (former IBJA president)
- What
- Rethinking India's bullion import, storage, and trade policies
- Where
- India
- When
- As of June 8, 2025
- Why
- Geopolitical uncertainties, potential supply chain disruptions, and need for strategic autonomy
Status Quo View
Strategic Autonomy Advocates
Bullion Market Regulation
Status Quo View
India's bullion market is significantly influenced by international benchmarks and unorganized trade.
Strategic Autonomy Advocates
Accelerating the development of India's own bullion exchange, like IIBX, with rupee-denominated pricing is crucial.
Import Dependency
Status Quo View
India currently relies heavily on bullion imports, making it vulnerable to global supply chain disruptions.
Strategic Autonomy Advocates
Diversifying import sources and forming strategic bilateral agreements are necessary.
Key facts
- Annual Gold Imports
- Over 700-800 tonnes annually
- Primary Import Sources
- Switzerland, UAE
- Proposed Reserve Type
- Strategic Bullion Reserve
- Emerging Exchange
- India International Bullion Exchange (IIBX)
- Proposed Currency
- Rupee-denominated pricing
Sources
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