India Urged to Unlock $10 Trillion Gold Holdings Through Financialization!

Senior policymakers and market experts, including former Union Minister P. P. Chaudhary, have called for channeling India’s vast household gold reserves—estimated at nearly $10 trillion—into financial instruments to boost economic growth. They warned that excessive physical gold holdings limit capital circulation in the economy and reduce productive investments. By encouraging consumers to shift towards gold-backed financial products, India can better utilize these idle assets and strengthen its financial ecosystem.

Chaudhary, a member of the Parliamentary Standing Committee on Finance, emphasized that increasing gold financialization would reduce the country’s dependence on bullion imports and ease pressure on the current account deficit (CAD). Experts believe that promoting schemes such as gold bonds and deposit programs can help convert passive wealth into active economic resources, ultimately supporting sustainable growth and financial stability.