Press Release

Gold has potential to re-sync global economic order and India can be the fulcrum in global economic corridor: Alok Kumar Choudhary, MD, SBI

India’s rich culture and traditions has a deep-rooted affinity for gold that transcends economic worth, it is a symbol of prosperity, tradition and auspices making it an integral part of social-economic landscape.

New Delhi, 1 December 2023: “Today we have a more nuanced understanding of gold and the multi-faceted potential of gold to re-sync the global economic order.  We have also seen how India can be the fulcrum in setting up global economic corridor.” said Mr. Alok Kumar Choudhary, Managing Director, State Bank of India (SBI) at the 15th International Gold Economic Forum organised by ASSOCHAM. 

“India’s rich culture and traditions has a deep-rooted affinity for gold that transcends economic worth, it is a symbol of prosperity, tradition and auspices making it an integral part of social-economic landscape. Gold has played a crucial role in India’s economic history, while the gold standard might not be in place anymore, several banks including the RBI continue to hold gold reserves as a staple component of their overall reserves.” he added. 

“In an interconnected world, economic ties transcend borders and gold’s role as common accepted asset can foster a sense of stability and potentially contribute to a more integrated, co-operative global economic system. Banks as critical stakeholders in the financial ecosystem play an important role in formalising gold to ensure the integrity of the financial system.” he added. 

Addressing the gathering, Dr. C. Rangarajan, Former Chairman - Economic Advisory Council to the Prime Minister of India & Former Governor - RBI said, “Gold has been a tangible asset since ancient times, in all cultures and across all periods of history. While held as reserve by central banks, it no longer plays the role of intermediary in circulation. As the second largest consumer of gold, India accounts for one-fourth of the global demand. India’s import of gold was 394 tons in 2000 and 774 tons in 2022 or 135 million USD. In 2022-23, gold imports accounted for 52.2% of the current account deficit. The current level of import duty on gold is reasonable and is among the lowest among commodities.” 

Mr. Somasundaram PR Regional CEO India World gold council, said “Gold is a very good diversifier, it de-risks your portfolio and enables you to take more risk in other financial asset classes.  India, as a gold consumer, can also be proud to have HUID technology through which every piece of jewellery hallmarked can be traced to its origins, which is aspirational in other markets. 

Mr Suvanker Sen Co- Chairman, National council on commodity markets ASSOCHAM, said “Consumer behaviour over the years in India has proven that in gold we trust. The various initiatives undertaken by all stakeholders has achieved a lot but a lot more can be done. The growth of the country is closely linked with the rise of gold as an asset. The 25,000 tons of gold that is embedded in our economy is one major driver of our growth.” 

Mr Mrugank Paranjpe, Chairman, National council on commodity markets ASSOCHAM, in his address said, “Gold always glitters in every aspects of the commodities market in India. It is the best hedge and has proven to be the best way of creating value.” 

Mr S C Aggarwal Senior Member Managing Committee ASSOCHAM, said “Gold has multiple usage, as an ornament, it is a status symbol and an investment as well. India needs around 800 tons of gold every year necessitating imports which increases our fiscal deficit.” 

Mr Arvind Kumar Former Senior Economic Advisor, Govt. of India addressing the gathering at the forum said, “Gold is both an item of consumption and investment. Demand is driven by jewellery fabrication as well as gold bars for investment. It is a misconception that the import of gold impacts exchange rates.” 

The forum also saw panel discussions where leading industry professionals engage in an exchange of ideas on improving the industry and the way forward on ensuring the growth of the industry.