Do you know the names of the highest gold producing states in India?
According to the statistics, Karnataka, Andhra Pradesh, Jharkhand, Kerala, Himachal Pradesh, and Bihar are the highest gold producing states in India.
So, If you want to learn more about gold production and the highest gold producing states in India, then keep reading!
India’s Obsession With Gold
In Indian culture, gold signifies many things, one of that is social status. It is a long-life dream of every household in India to be able enough to possess gold. Women are given gold jewelry as dowry by their parents to make a statement to the groom’s family that the bride comes from a respectable family. From weddings to social gatherings, women like to dress up and wear their gold jewelry to flex their husbands’ wealth. Additionally, some people get their wedding dresses bedazzled with gold ornate and embroideries.
People in the Indian sub-continent can ascertain the financial position and social status of anyone from the gold women from the family wear. The good thing about gold is that it is even a liquid asset. So, at times of any financial difficulties, you can sell some of your gold jewelry to ease off the pressures. That is one other reason behind the Indian obsession with gold, but it all boils down to the country’s culture. The Indian culture considers gold as a significant asset that raises their social status and enhances respect in society.
Due to this Indian obsession with gold, India is the world’s second-biggest consumer of gold after China. India consumes 849 metric tonnes of gold and thus is the second-biggest consumer of gold after China (984 metric tonnes). Through imports, the country meets 86% of its gold demand.
Some Interesting Facts
- According to the data by World Gold Council 2021, China is the highest gold producing country in the world. China tops with a yearly production of 368.3 tonnes, followed by Russia (331.1 tonnes) and Australia (327.8 tonnes).
- Australia and Russia have the world’s largest gold mine reserves of 11,000 metric tonnes and 6,800 metric tonnes.
- After the financial crisis of 2008, many countries started investing in gold reserves.
- The United States has the world’s largest gold reserves of 8,133.5 tons.
Gold in India
According to the data from National Mineral Inventory, India has gold ore resources of 501.83 million tonnes which possess 654.74 tonnes of gold metal. The 17.22 million tonnes from this goes into the reserves category while the rest to the remaining resources category.
The largest resources of gold ore are in the following states:
– Bihar (44%)
– Rajasthan (25%)
– Karnataka (21%)
– West Bengal (3%)
– Andhra Pradesh (3%)
– Jharkhand (2%)
*Please note that these states with the largest gold ore reserves are not necessarily the highest gold producing states in India.
According to a report by the World Gold Council, India produces only 1.6 tonnes of gold. The country can enhance its gold production to 20 tonnes a year. The gold industry in India will generate $50 million in yearly revenues if the country enhances its production level.
Highest Gold Producing States in India
Here are the highest gold-producing states in India:
Karnataka is the highest gold producing state in India. The state has estimated gold reserves of 103.84 million tonnes. The gold mines — Hutti and Raichur produce more than 80% gold for India. Karnataka possessed the Kolar field — the oldest Indian mine that gave 800 tonnes of gold to India until its closure in 2001.
Land of Gold is another name for Karnataka because of its gold contribution to the Indian economy.
Andrah Pradesh is second on the list of the highest gold producing states in India. The state has unique geology making it rich in various minerals, including gold. Anantapur, Chittoor, and Kurnool are the main districts with the most gold deposits. AP has so far produced 37,025 kgs of gold for the country.
Jharkhand is the third state on our list of the highest gold producing states in India. It is rich in minerals and possesses 40% of the country’s mineral capacity. Kunderkocha, Lava Gold, Parasi, Pahadia, and Bhitar Dari gold mines are in Jharkhand. The state also owns alluvial gold found from the Subarnarekha River sands.
The Kerala state contains alluvial gold that comes from river terraces. The gold reserves in Kerala saturate mainly in Malappuram and Palakkad districts.
Himachal Pradesh has a low contribution to overall gold production in India. Gold normally comes from the rivers of Shimla and Bilaspur.
Bihar, despite having the gold ore resources of 222.8 million tonnes with more than 30 million tonnes of gold, lies in the 6th spot on our list of the highest gold producing states in India. 44% of the gold ore reserves exist in this state. Despite having the most gold ore resources, the state is the poorest in India. The majority of the gold reserves are in Naxalite-affected affected regions making it difficult for the government to extract it.
Gold production in India is not producing as per its potential — The Final Words
Despite the country being the largest consumer of gold, the gold production in India has been declining since 2010. Many factors account for such declines, including regulatory restrictions, tax policies, and poor infrastructure in areas with gold reserves. Besides, the closure of the Kolar goldfield in Karnataka further plummeted the production of gold in the country.
The government, however, is serious now to enhance the production capacity of gold mines. The government has also made significant altercations on Minerals Evidence of Mineral Contents Rules. The amendments are anticipated to attract a major private investments in the exploration and mining of deep-seated minerals and so will eventually reduce the cost of gold extraction. Additionally, many goldfields are in pipeline to restart the production (including Ramagiri goldfields), which will enhance the gold production in the country.
Besides, the government is working on improving infrastructure to further boost the mineral, including gold extraction.
If all goes right, the country will be able to cater (if not fully) to its gold demand instead of importing from outside.