The government is working on a broad policy push aimed at better utilising domestic gold holdings and reducing India's dependence on imports, according to official sources aware of the discussions.
As part of the exercise, the Centre has initiated consultations with banks and other stakeholders to examine ways to unlock gold available within the domestic ecosystem. The discussions are focused on strengthening the gold lending framework, improving supply efficiency and increasing the availability of domestic gold through formal channels.
Sources said policymakers are reviewing trends in the gold loan market and evaluating measures that could help mobilise a larger share of gold held within the country. The government is also examining ways to deepen monetisation and lending channels to bring more gold into productive use.
Review meetings are underway to assess gold held as stock-in-trade by business entities, sources said. The exercise is expected to provide a clearer picture of gold available within the domestic economy and identify opportunities to reduce reliance on imported supplies.
The move comes as policymakers look to address the country's sizeable gold import bill while making better use of existing domestic stocks.
According to sources, discussions are ongoing and remain at a formative stage. However, a framework aimed at improving the utilisation of domestic gold holdings could be rolled out in the coming months.
The Finance Ministry did not immediately respond to a request for comment.
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