Gold is more than a metal in India; it’s a lifestyle. And you know who owns most of it? Indian women. Indian households have more gold than the total reserves of the USA, Germany, Italy, France and Russia combined, with an estimated 25,000–27,000 tonnes of the yellow metal lying at home in the form of jewellery or even in lockers, safes, hidden in attics and behind walls. But here’s the thing — can all of this privately held gold, and meet at home, do more to India’s economy than just it sitting in some of the vaults?
India’s Gold Hoard: A Giant Awakens?
INDIAN WOMEN HAVE BEEN GUARDIANS OF GOLD FOR CENTURIES, Collecting it through marriage and birth as a symbol of wealth, security, and social status This prized asset is the center of weddings, festivals, even emergencies. But what families view as financial security, economists view as a vast, underutilized resource with the potential to reshape India’s economy.
The demand for this metal has not reduced despite the increasing gold prices. But what if billions of dollars worth of gold sit idle in households instead of inside the economy? It makes for a paradox — India imports tons of gold each year, driving the trade deficit higher, but trillions of rupees worth of the metal remain locked away.
Women’s Gold from India to the Rescue of the Economy?
Imported Gold vs Hoarding Wealth
In August 2024 alone, India’s gold imports exceeded $10 billion. The irony? India wouldn’t have to import as much, if even a fraction of the gold lying in Indian homes came into the system. This way we could increase liquidity using our own gold and stay less reliant on foreign gold import.
Gold Monetization: A Missed Opportunity?
GMS (Gold Monetization Scheme) was launched to encourage Indians to deposit their gold in banks in the form of an interest-generating mechanism. The idea? Rather than gold sitting idle in vaults, it could be put to productive use in the economy. However, cultural attachment, trust issues, and doubts regarding gold purity dips have lowered adoption rates.
Gold Loans: The Rising Trend
As the price of gold rises, many households in India are finding ways to unlock capital from their reserves by taking gold-backed loans. In the first nine months of the fiscal, loans against gold grew by 68 percent over a low base of 12.7 percent the previous year. This pattern suggests people are willing to use their gold — and not just as part of an investment strategy, but largely during a crisis.
How Much Gold Can You Keep? Here’s What the Law Says
As India celebrates gold ownership, the government does have regulations on the amount of gold a person can legally own without raising eyebrows:
Women who are married: 500 grams maximum
Unmarried women: Maximum 250 grams
Men: Up to 100 grams
Gold purchased legitimately (through inheritance, declared income, etc.) is tax-free, but undeclared gold can carry severe penalties if discovered during income tax raids.
India’s Underground Gold: What’s Next?
So, what’s the way forward? In fact, if only 10% of the gold in people's homes in India were monetized, we could cut gold imports, provide a strong support to the rupee and motivate economic growth in a big way. But in order to do that, we need to have:
1.Increased knowledge about gold monetization schemes.
2.Confidence-building measures to reassure citizens that their remains are safe.
3.More looser financial products linked to gold assets.
India’s gold obsession isn’t going to fade away — but it’s time to reconsider the ways we use it. The gold that is stuck hidden in homes, if unlocked wisely, can become India’s economic game-changer. That is the question; will Indian women overturn tradition and change the economy?
