Domestic gold production boosts if barriers are removed: World Gold Council

Domestic gold production boosts if barriers are removed: World Gold Council

The World Gold Council (WGC) has made it clear that annual gold production in India could significantly increase if obstacles are overcome. According to the WGC report, annual gold production in India will increase from the current 1.6 tonnes to a combined 20 tonnes if the government removes barriers and encourages investment in the sector. India, the second-largest gold exchanger in the world, is known to rely heavily on gold imports for domestic needs.

Encouraging the production of gold domestically would also allow the government to control imports. In 2021, India will import a maximum of 1,050 tonnes of gold, which is 430 tonnes higher than in 2020. DWGC India Operations Regional Officer PR Somasundaram said there was a need to improve Indian mining capacity, remove obstacles and encourage large-scale investment in gold mining if this is to happen. The council said obtaining a mining license in India would require a complex process such as approvals from various government departments.

He expressed concern that many of the gold mining areas were located in desolate areas with no road or rail connectivity and that transporting materials from the site to the outposts had become a costly affair. Gold production from the Hottie Gold Mines in Karnataka is currently high in India. The mine employs more than 4,000 workers and contractors. The WGC estimates that Rs 7,000 crore will be invested in the sector for other construction of mines.