Uday Kotak warns India's gold imports could hit $90 billion, calls for policy committee

Speaking at the Conference on Financing India’s Journey Towards Viksit Bharat, Uday Kotak warned that the nation’s gross gold import expenditure could climb to $88-90 billion in FY27, potentially swelling one outlet-account deficit to around $60 billion if oil prices stay high. He pointed out that excluding gold, India would actually run a surplus, underscoring the mismatch between household gold holdings and productive investment.

Kotak proposed forming a committee to devise a solution that respects cultural demand while curbing fiscal strain. He also called for stricter fiscal consolidation, noting the consolidated fiscal deficit remains above 7 percent, and cautioned against the over-financialisation of capital markets. Emphasising that global uncertainty should spur reforms, he urged faster implementation of measures to boost domestic production and reduce reliance on imports. Finally, Kotak stressed the importance of coordinated action between the centre and states to navigate geopolitical and economic challenges.