Prime Minister Narendra Modi has issued a significant appeal to the nation regarding the consumption of gold, highlighting its impact on the country's economy. Addressing the challenges posed by the international Gulf crisis, the Prime Minister noted that India remains the world's largest importer of gold. This high dependency on imports necessitates the payment of vast amounts of foreign exchange. To mitigate this, PM Modi suggested that citizens should consider postponing their gold purchases for at least one year, while by exercising restraint, the nation could potentially save billions of dollars in foreign currency, which is currently being drained to meet the domestic demand for the precious metal.
Five-Year Trends in Domestic Gold Production
In response to queries regarding India's self-reliance in mineral production, the government presented detailed statistics in Parliament earlier this year. BJP MP Dr. Hemant Vishnu Savara had sought information on the country's gold output over the last five years. The data indicates a consistent upward trajectory in domestic gold mining. In the fiscal year 2020-21, India produced 1127 kg of gold. This figure rose to 1407 kg in 2021-22. The following year, 2022-23, saw a marginal increase of 26 kg, bringing the total to 1433 kg. The growth gained momentum in 2023-24, with production crossing the 1500 kg mark to reach 1586 kg. For the year 2024-25, the production further climbed to 1627 kg.
Copper: The 'Future Gold' and Production Dynamics
The Prime Minister has categorized copper as the 'Gold of the Future,' emphasizing its critical role in the modern digital and green economy. Copper is an indispensable component in the manufacturing of electric vehicles (EVs) and solar panels. PM Modi stressed the need to prioritize indigenous mining over imports to support the 'Make in India' initiative. However, the production of copper ore has seen some volatility over the past five years. In 2020-21, production stood at 108,718 tonnes, increasing to 115,313 tonnes in 2021-22. After a slight dip to 112,745 tonnes in 2022-23, it peaked at 125,230 tonnes in 2023-24. Most recently, in 2024-25, the production volume decreased to 105,012 tonnes.
Government Initiatives to Enhance Mineral Output
To reduce import dependency and boost domestic availability, the Ministry of Mines has implemented several policy measures. A key highlight is the introduction of the Exploration Licence regime, designed to facilitate preliminary surveys and prospecting in deep-seated mineral zones. These activities are funded by the National Mineral Exploration and Development Trust (NMEDT) and executed by Notified Private Exploration Agencies (NPEAs). Since the policy shift in 2015, the government has successfully auctioned 28 gold blocks and 11 copper blocks to private and public entities to accelerate extraction processes.
Key Highlights and Statistical Overview
Hindustan Copper Limited (HCL), a public sector undertaking under the Ministry of Mines, remains the primary entity engaged in copper mining across the country. HCL has adopted various advanced measures, including the 'Paste Fill' technique, to enhance the safety and volume of ore production. Addressing rumors regarding the future of the PSU, the government has clarified that there is currently no proposal under consideration for the disinvestment of Hindustan Copper Limited. The focus remains steadfast on increasing domestic output to meet the rising demands of the digital and renewable energy sectors while conserving precious foreign exchange reserves.