Gold worth nearly $700 billion lying idle in Indian households could be a powerful engine to fund the country’s growth, Nilesh Shah said, calling for a stronger push towards monetisation of household gold.
In an exclusive interview with ANI, Shah underscored that India’s long-standing cultural preference for holding gold as a store of value has inadvertently locked up vast capital outside the formal economy.
“Collectively India has spent 700 billion dollars... for import of precious metal... It is more than the foreign direct investment we have received... It is more than the foreign portfolio investment we have received.” He pointed out that a significant portion of this gold remains unproductive. “It is lying in tijori (lockers). It has become ice. If we can monetize it, if we can bring it into the formal economy, then we’ll have Triveni Sangam of talent, capital and infrastructure. Growth will come on its own.”
Shah explained that India imports around 1,000 tonnes of gold annually, out of which only about 300 tonnes is exported as jewellery, leaving the bulk accumulated domestically. He also highlighted that informal inflows further add to this stock.
Over the last 25 years, India has spent hundreds of billions of dollars importing gold, much of which ends up sitting idle in households as jewellery or savings. If even a part of this gold were brought into the formal financial system and used productively, it could significantly boost economic growth.
“In 25 years... we have spent 500 billion dollars plus in import of gold... All passengers especially coming from middle east countries are loaded with jewellery... My estimate is... 700 billion dollars.”
Calling India a “kasturi animal”, Shah said the country possesses wealth but fails to utilise it efficiently. “India is a kasturi... it has kasturi in its navel, but it is roaming in the jungle.”
On solutions, Shah noted that behavioural change is already underway, citing the rapid growth in gold-backed lending. “The fastest growing segment for retail lending is gold loan... It’s no longer a taboo.”
He stressed that policy innovation and financial infrastructure would be key to unlocking this capital. “We need to think about innovative solutions... If we can explain to them in the right way... then it changes.”
According to Shah, mobilising idle gold could significantly reduce dependence on external capital while accelerating domestic investment-led growth, aligning with India’s long-term economic ambitions.
Published on April 22, 2026