India Discovers Major Gold Reserves in Odisha – But Will It Make a Difference?

Massive Gold Deposits Identified in Odisha

India has confirmed the discovery of substantial gold reserves in Odisha, particularly in the districts of Deogarh, Keonjhar, and Mayurbhanj. This announcement, made in the Assembly, aligns with the Geological Survey of India’s (GSI) 2023 report, which had identified potential gold-rich zones in the region. Odisha’s Mines Minister, Bibhuti Jena, also highlighted that Malkangiri, Sambalpur, and Boudh could hold further gold deposits.

No Official Estimates on Gold Reserves Yet

Despite being labeled as a “massive” discovery, the government has not provided an official estimate of the total gold reserves found. As of 2023, India held only 70.1 metric tons of gold, making its domestic production significantly lower than its import dependency. If Odisha’s deposits contain 10 to 20 metric tons—a likely estimate based on geological surveys—it would still be negligible compared to India’s annual gold imports of 700–800 metric tons.

Why the Discovery Won’t Reduce India’s Gold Import Dependence

India’s gold mining industry remains underdeveloped, producing only 1.6 metric tons per year—less than 0.25% of its import needs. While the Odisha discovery could contribute to increasing domestic gold production, there is no official extraction timeline or government plan for commercial mining. The lack of clear policies means that India’s dependency on imported gold is unlikely to change in the near future.

India Lags Behind in the Global Gold Market

India’s discovery comes at a time when other nations are significantly boosting their gold reserves. In November 2024, China announced the discovery of a massive 1,000-metric-ton gold deposit in central China, valued at approximately $83 billion. Unlike India, China has an established gold mining infrastructure, producing around 380 metric tons annually—10% of the global supply. The newly discovered Chinese reserves further strengthen its position in the global gold market and could accelerate BRICS’ push for a gold-backed currency.

Russia’s Gold Reserves Overtake China’s

On March 1, 2025, Russia’s total gold reserves reached $217.4 billion, surpassing China’s holdings. Gold now constitutes 34.4% of Russia’s foreign reserves. The country has been consistently increasing its gold reserves over the past decade, particularly after the 2014 Crimea annexation and subsequent Western sanctions. This move positions Russia as the fifth-largest gold holder globally, while India still lacks a strong mining policy to improve its standing in the market.

Gold Demand Rises, But India Remains a Consumer

The global demand for gold reached 4,900 metric tons in 2024, with record-breaking prices driven by central bank purchases and economic uncertainties. Gold prices surged by 27% over the year, emphasizing its growing importance as a financial asset. However, India’s role in the global gold economy remains largely limited to consumption, as it lacks a structured mining strategy and advanced extraction technology.

Odisha’s Gold Discovery – A Missed Opportunity?

While the discovery of gold in Odisha is significant, its true impact depends on how India leverages it. Without a clear mining policy, infrastructure investment, or technological advancements, this discovery may remain just an announcement rather than a game-changer for India’s gold industry.