India needs to unlock the massive stock of household gold lying idle and simultaneously reduce regulatory and compliance hurdles for businesses to achieve the goal of becoming a developed nation, Kotak Mutual Fund Managing Director Nilesh Shah said on Tuesday.
Speaking at a conference organised by the PHD Chamber of Commerce and Industry on geopolitical shocks and financial stability, Shah highlighted the scale of India’s gold imports and called for policies that would help channel dormant household wealth into the formal economy.
“In the last 25 years of this century, we have imported 510 billion dollars of gold on official account,” Shah said, noting that the figure excludes jewellery exports.
According to Shah, Indians are estimated to hold nearly 25,000 tonnes of gold, much of it locked away in homes and lockers. Calling gold an “emotional investment” for Indian households, he said policymakers must find ways to monetise or financialise these holdings without affecting sentimental attachment.
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He pointed out that India has effectively invested more money in gold than the net foreign direct investment and foreign portfolio investment received over the years. Shah also highlighted the rapid rise of the gold financing industry, describing gold loans as one of the country’s fastest-growing retail business segments.
“Today, gold loan financing is a six-lakh crore business,” he said.
Beyond gold monetisation, Shah stressed the need to ease compliance and regulatory burdens faced by Indian entrepreneurs. While acknowledging improvements in infrastructure, he argued that businesses still struggle with outdated systems and cumbersome regulations that hinder growth and global competitiveness.
Drawing a parallel with Abhimanyu from the Mahabharata, Shah said Indian startups and entrepreneurs continue to innovate despite structural challenges.
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He cited space startup Agnikul Cosmos as an example of India’s growing innovation ecosystem, praising founder Srinath Ravichandran and the company’s work in developing the world’s largest 3D-printed rocket engine in India.
“People like Srinath Ravichandran give me confidence that Viksit Bharat toh banke rahega,” Shah said.
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