VIJAYAWADA: Mineral industry experts have stressed the need for India to rapidly strengthen its domestic gold mining ecosystem, warning that continued dependence on imports could weaken long-term economic resilience and expose the country to global market volatility.
In this backdrop, Jonnagiri gold project of Andhra Pradesh is being viewed as an important milestone for India’s mining sector. Developed as one of the country’s first modern private-sector gold mining projects after Independence, the project has demonstrated the potential of scientific exploration and long-term investment.
Experts believe India, despite being one of the world’s largest consumers of gold, has failed to fully utilise its vast untapped mineral potential. They argue that faster exploration, policy stability and quicker approvals are essential to transform the sector into a major contributor to economic growth and regional development. “India’s gold story should not be defined only by consumption.
It must also be defined by production, capability and resource security,” Dr Hanuma Prasad Modali, managing director of Deccan Gold, only BSE listed critical mineral company, told TOI.
According to industry estimates, nearly 75% of India’s gold-bearing regions remain unexplored or underexplored. Mining experts say the challenge lies not in lack of resources, but in regulatory bottlenecks, prolonged litigation and delays in project execution.
Mining consultant RK Sharma said India loses significant foreign exchange every year through large-scale gold imports. “Reducing import dependence through domestic production will strengthen economic stability and create long-term industrial opportunities,” he said.
Experts note that the issue has gained significance amid growing global uncertainty and increasing focus on resource security by major economies. Gold continues to remain a strategic reserve asset globally, with central banks steadily increasing gold holdings despite high prices.
“The emergence of Jonnagiri shows what is possible when mining projects are supported through policy stability, scientific exploration and sustained commitment,” Dr Hanuma Prasad said.
Industry observers believe projects like Jonnagiri can generate large-scale employment, improve infrastructure and stimulate economic activity in underdeveloped regions. Many mineral-rich districts also overlap with the Aspirational Districts identified by NITI Aayog, where healthcare, education and employment indicators require improvement.
“Responsible mining should not be viewed merely as extraction of resources. It can become a catalyst for regional transformation, industrialisation and community upliftment,” Dr Hanuma Prasad observed.
Geologists say India must significantly accelerate exploration activities to match global mining jurisdictions such as Australia, Canada and South Africa. “Technology-led surveys and greater private sector participation are critical for unlocking India’s mineral wealth,” said Anita Verma.
Experts have also called for better integration between mining policy, industrial policy and regional development strategies. They argue that mining must increasingly be treated as a strategic sector linked to manufacturing competitiveness, energy transition and national resource security.
“Countries securing critical minerals today will shape the economic power structures of tomorrow,” Dr Hanuma Prasad said, emphasising that India already possesses the geology, market demand and entrepreneurial capability needed for expansion.
However, experts caution that commercially viable projects tied up in courts and administrative procedures for years could slow national progress. They say faster approvals and regulatory certainty are necessary to attract long-term investment into the sector.
“The success of Jonnagiri is only the beginning. More viable projects must move from paper to production responsibly, sustainably and without unnecessary delay,” Dr Hanuma Prasad added.
With the country looking to reduce long-term import dependence and strengthen economic resilience, industry experts believe domestic gold mining could emerge as a crucial pillar of India’s future growth strategy.
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