India seeks overseas partners in developing gold reserves

The Government of India has expressed concerns about the size of the country’s bill for importing gold.

According to the minister of state for mines, T Subbarami, each year India imports approximately 800 tonnes of gold, worth Rs 55,000 crore.

Essentially, this is because the country’s own reserves are underdeveloped and in his statement, the minister acknowledges that explorations involve substantial sums in risk capital.

As a result the Indian Government is now actively encouraging mining companies to form joint ventures with overseas mining organisations.

In the longer term, Mr Subbarami is expecting the Indian mining community to contribute more to the country’s GDP, as the nation’s gold reserves are estimated to be worth Rs 6,00,000 crore. In addition, it has 475 million tonnes of diamonds.

The Federation of Indian Mineral Industries will take a crucial role in the proposed expansion of the mining sector, with internal investment of around Rs 5,00,000 crore expected in the next five years.

The minister also sees the expertise of the Geological Survey of India and the Indian Bureau of Mines as crucial in achieving his expectations.

The Indian government is currently working on a new mining policy that will reflect the importance it attributes to further development of the sector.