Virendra Pandit

New Delhi: Gold worth USD 700 billion, lying idle as ice in Indian households, can fund the country’s growth, Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company, has said.

This gold could become a powerful engine to fund India’s quick growth, he said, as he called for a stronger push towards monetization of household gold, ANI reported him as saying on Wednesday.

“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.”

Shah pointed out that a significant portion of this gold remains unproductive. “It is lying in lockers (lockers). It has become ice. If we can monetize it, if we can bring it into the formal economy, we’ll have Triveni Sangam of talent, capital and infrastructure. Growth will come on its own.”

He explained that India imports around 1,000 tonnes of gold annually, of which only about 300 tonnes is exported as jewellery, leaving the bulk accumulated domestically. 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 jewelery 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 those coming from the Middle East countries, are loaded with jewellery… My estimate is… 700 billion dollars.”

Comparing India with a Kasturi Mrig (Musk Deer), Shah said the country possesses wealth but fails to utilize it efficiently. “India has musk in its navel, but it is looking for it in the forest.”

On solutions, Shah noted that behavioral 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, mobilizing idle gold could significantly reduce dependence on external capital while accelerating domestic investment-led growth, aligning with India’s long-term economic ambitions.