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Prime Minister Narendra Modi on Monday appealed to Indians to refrain from buying gold for the next year as the Iran-US-Israel war continues to hurt the global economy.
The government also increased import duty on gold and silver from 6 per cent to 15 per cent, effective from 13 May, to discourage excessive purchases
India’s relationship with gold goes far beyond jewellery and tradition.
From households, temples, and shrines to the Reserve Bank of India (RBI), the yellow metal remains deeply linked with the country’s economy, savings culture and financial security.
India imports a major share of its gold demand, which increases pressure on foreign exchange reserves and widens the trade deficit.
During the financial year 2025-26 India’s gold imports surged more than 24 per cent to a record USD 71.98 billion, compared to USD 58 billion in 2024-25.
Gold imports stood at USD 45.54 billion in 2023-24. The figure was USD 35 billion in 2022-23 and USD 46.14 billion in 2021-22. Imports also reached USD 34.62 billion in 2020-21 and USD 28.2 billion in 2019-20.
In terms of volume, however, gold imports declined 4.76 per cent to 721.03 tonnes in 2025-26 from 757.09 tonnes in the previous fiscal. Imports had stood at 795.2 tonnes in 2023-24 and 678.3 tonnes in 2022-23.
On the other hand, the RBI currently holds 881 metric tonnes of gold reserves, making India the world’s seventh-largest holder of gold reserves among central banks. The United States ranks first with 8,133.5 metric tonnes of gold.
The real strength of India’s gold, however, lies with its people. Estimates suggest Indians collectively own nearly 25,000 tonnes of gold, from lower middle-class households to the country’s wealthiest families. This accounts for nearly 11 per cent of the world’s total gold holdings.
The estimated value of this privately held gold is around Rs 110 lakh crore, or nearly $1,135 billion. Importantly, this figure does not include the vast quantities of gold stored in Indian temples.
How Much Gold Does India Have?
India possesses significant untapped domestic gold reserves.
According to estimates, the country has nearly 501 million tonnes (MT) of gold reserves.
The largest gold reserve in India was discovered in the Jamui district of Bihar. Around 222 MT of gold reserves are believed to exist in the region.
This accounts for nearly 44 per cent of India’s total gold reserves, according to a reply given by then Union Mines Minister Pralhad Joshi in the Lok Sabha in 2022 to a question raised by MP Sanjay Jaiswal.
Reports trace the discovery of gold deposits in Bihar back to 1980, when villagers reportedly found shining particles in soil brought out by ants.
Despite the discovery over four decades ago, mining has not begun yet.
The Bihar government is proactively moving forward to initiate exploration work for these gold reserves.
Bihar conducted a fresh resurvey in 2021. In 2022, the government decided to begin the process of extracting gold from the Jamui mines.
The project, however, remains strictly in the survey, licensing, and advanced exploration planning phases. Commercial mining operations are likely to commence by 2027-28.
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