Uday Kotak: ‘Indians and their gold is a puzzle we must solve’
Uday Kotak, founder of Kotak Mahindra Bank, has raised concerns about India's rising gold imports and their impact on the country's current account deficit. He suggested forming a committee to find ways to channel household gold wealth into productive economic use.
Why it matters
Gold imports significantly impact India's trade balance and currency stability, making this a critical issue for the country's long-term economic growth and fiscal policy.
India’s gold imports have been in focus since the start of the US-Iran war as they add pressure to the country’s import bill at a time when oil is also rising and rupee is depreciating.Amid this, veteran banker and Kotak Mahindra Bank founder Uday Kotak on Friday said India needs to find a way to address its high gold imports, warning that the country's gross gold import bill could rise to $88-90 billion in FY27. He also suggested that a committee could be formed to examine the issue.Speaking at the Conference on Financing India's Journey Towards Viksit Bharat, attended by Finance Minister Nirmala Sitharaman and finance ministers of states and Union Territories, Kotak said the gold held by Indian households may be substantial individual wealth but has not been channelled into productive economic use.Rising gold import bill"For FY26, the current account deficit of India was 25 billion dollars.
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