India’s gold economy is witnessing a pivotal shift in 2025 with the discovery of major new gold deposits across Odisha, Madhya Pradesh, and Andhra Pradesh. According to a recent SBI Research report, these findings arrive at a critical moment, as global gold prices soar and India continues to rely heavily on imports to meet its strong consumer demand. The new reserves have the potential to strengthen domestic supply, reduce external dependence, and improve India’s current account balance.
A new SBI Research report titled “Coming Of (a Turbulent) Age: The Great Global Gold Rush” indicates a potentially transformative phase for India’s gold sector, following significant discoveries of gold deposits across three states—Odisha, Madhya Pradesh, and Andhra Pradesh—in 2025. These findings, the report notes, could help reduce India’s heavy dependence on gold imports and offer relief to the country’s current account balance amid surging global prices.
In Odisha, the Geological Survey of India (GSI) has identified new gold deposits across Deogarh, Keonjhar, and Mayurbhanj districts. The discovery is estimated to contain around 1,685 kg of gold ore, marking one of the state’s most promising findings in recent years. In Madhya Pradesh, a major gold reserve has been uncovered in Jabalpur, with preliminary estimates suggesting deposits running into lakhs of tonnes, positioning the region for potential large-scale mining activity. Meanwhile, in Andhra Pradesh’s Kurnool district, India’s first major private gold mine is set to begin operations, with an expected annual production capacity of 750 kg. Together, these discoveries signal renewed momentum in the country’s mining sector.
The SBI Research report highlights that these developments could play a critical role in easing India’s longstanding reliance on gold imports. Although India is among the world’s largest consumers of gold, its domestic production remains minimal. As per World Gold Council estimates for 2024, nearly 86% of India’s total gold supply was met through imports, underlining the gap between domestic output and demand.
India’s appetite for gold remains robust. In 2024 alone, demand crossed 800 tonnes, prompting corresponding import levels. Revised data from the Ministry of Commerce shows that gold imports for 2024 were adjusted upward—from 724 tonnes to 812 tonnes—owing to corrections in data between July and October 2024. India accounted for 26% of global consumer gold demand that year, ranking second only to China, which consumed 815.4 tonnes. Indian households continue to be among the world’s largest private holders of gold, collectively owning over 25,000 tonnes—far surpassing the Reserve Bank of India’s reserves.
The global gold market has also experienced a dramatic shift since 2022, with central banks worldwide increasing their gold purchases as a hedge against economic uncertainty. India’s own central bank has expanded its gold reserves to nearly 880 tonnes in 2025. Amid this surge in demand, gold prices have soared—rising over 50% year-to-date. Global gold prices touched around US$4,077 per ounce, while domestic prices climbed to ₹1,22,700 per 10 grams, leading to a notable 16% year-on-year dip in jewellery consumption in Q3 2025.
Despite concerns about price volatility, the SBI Research report suggests that the impact on India’s current account deficit (CAD) will remain manageable. With gold touching historic highs in October 2025, the report estimates that even if import quantities reach 90% of last year’s levels and prices remain near US$4,000 per ounce, the CAD would rise by only about 0.3% of GDP. Ultimately, the report projects a stable CAD of 1–1.1% of GDP in FY26, supported in part by the potential of newly discovered domestic gold reserves.
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