The World Gold Council (WGC) is working on a strategic roadmap to define the role of gold in achieving India’s ‘Viksit Bharat’ (Developed India) goal by 2047, Sachin Jain, Regional CEO, WGC India, has said. 

Deloitte and other experts have been engaged to draft this comprehensive document, Jain told businessline on the sidelines of the India Gold Policy Centre-IIMA Annual Gold & Gold Markets Conference 2025 in the Capital. 

“This document will not just be a paper. It will provide a detailed view for the next five years and outline milestones for 2030, 2035, 2040, and 2047,” he said.

Gold price trends post-Trump inauguration

Since Trump’s swearing-in on January 20, 2025, gold prices have remained on an upward trajectory. On February 28, 2025, gold reached $2,925.10 per ounce, reflecting a 42 per cent annual return. Analysts attribute this surge to multiple factors, including Trump’s proposed tariffs on steel and aluminium, which have sparked fears of a trade war, prompting investors to turn to gold as a safe-haven asset.

Jain noted a sharp rise in US gold imports in recent weeks as investors moved to stockpile bullion ahead of potential tariff hikes.

China and India’s central banks have been increasing their gold reserves, contributing to higher global demand.

According to the World Gold Council data, India’s gold reserves are estimated at 800+ tonnes, while China’s official reserves have exceeded 2,200 tonnes.

The Russia-Ukraine conflict continues to drive market volatility. Investors remain cautious amid uncertainty surrounding US foreign policy under the Trump administration. A weaker US dollar in early March further supported gold’s price rise. Market expectations about Federal Reserve interest rate decisions have also influenced investor sentiment.

India’s strategic vision for gold

India is the world’s second-largest consumer of gold, with an annual demand exceeding 700-800 tonnes. While the timeline for the report’s release remains unclear, Jain emphasised that it would serve as a guiding document for the next two decades.

Future outlook

Jain felt that global gold prices should ideally be determined by demand and supply fundamentals, rather than external geopolitical and macroeconomic uncertainties.

As markets await further clarity on US trade policy, interest rate decisions, and geopolitical stability, gold is likely to remain a key investment avenue for hedging risks in an uncertain global economy, economy watchers said. 

Meanwhile, Mike Oswin, Global Head of Market Structure and Innovation, World Gold Council, suggested that Indian banks must be allowed to count and treat gold as liquid asset for liquidity coverage ratio purposes. “Gold is a high quality liquid asset. But gold is not recognised as a high quality liquid asset under the Basel-3 framework. It’s inclusion is really relevant for India given the affinity with gold in this market. This can be integrated with the Indian financial system,” Oswin told businessline here.

Currently, Basel-3 capital requirements like LCR are very punitive to gold and banks have to set aside a lot of assets against that gold, he added. 

At a policy level, if gold were to be accepted as a liquid asset, the capital requirement of bank’s balance sheet would drop and banks can bring gold into their operations without the capital requirements that make it difficult to do today, Oswin added.