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India owns one of the largest household gold reserves in the world. For decades, families have trusted gold as a safe asset. However, most of this household gold stays idle. Experts believe this wealth can play a bigger role in India’s growth story.
India aims to become a developed nation by 2047. Better use of household gold has become an important discussion to reach this goal. Industry leaders say smart policies on digital gold and gold loans can bring this wealth into the formal economy.
Mahendra Luniya, Chairman of Vighnharata Gold Ltd., says India must act now. “If India wants to meet the Viksit Bharat 2047 goal, household gold must move into the digital economy,” he says. According to Luniya, digital gold can help the government use this wealth productively and support faster economic growth.
Gold prices have reached nearly Rs. 1.5 lakh per tola. This has changed buying habits. Jewellery sales have slowed. Many buyers now purchase very small quantities or hold gold only as an investment. Luniya explains that this trend locks liquidity inside homes instead of circulating in the economy. Digital gold offers a simple solution. It keeps the emotional value of gold while allowing economic use.
Luniya also highlights the success of Sovereign Gold Bonds. He says these bonds helped people shift from physical gold to financial gold. “Sovereign Gold Bonds brought awareness and positive change,” he says. He urges the government to restart the scheme, as it allowed access to capital without financial loss.
Gold loans also remain important. Umesh Mohanan, CEO of Indel Money, says gold loans support small traders, farmers, and micro-entrepreneurs. “Gold loans provide quick and safe funds during emergencies,” he noted. Despite this, borrowers pay high taxes on processing fees. Mohanan believes Budget 2026 should offer fair tax treatment to support financial inclusion.
Industry data shows the organised gold loan market may grow from Rs. 12 lakh crore to Rs. 18 lakh crore by 2027. Indian households own nearly 34,600 tonnes of gold, but most of it remains unused.
Budget expectations also extend to national security technology. Rahul Dwivedi, Founder and CEO of Pelorus Technologies, says India needs stronger AI-led intelligence and cybersecurity systems. He adds that indigenous innovation can reduce dependence on imports and improve readiness.
Ankush Tiwari, CEO of pi-labs, adds, “Multi-year capital allocations for AI-led defence systems, cybersecurity platforms, and robotics are essential. Incentive structures like PLI for sovereign security technologies could support long-term deployment.”
As Budget 2026 approaches, household gold stands at the center of economic discussions. With the right push, this hidden wealth can support economic growth, financial inclusion, and India’s long-term development goals.
Also Read: Budget 2026: Inflation Slide Sets Stage for RBI’s Next Big Move
