Atmanirbharta, central to India’s philosophy and progress, has historically transformed crises into capabilities. Amid global volatility, self-reliance in finance, technology, and defence is vital to mobilise domestic resources and ensure sustainable, resilient national growth.

Background

• Atmanirbharta as a Philosophy: Self-reliance has been central to India’s journey, not only as an economic plan but as a way of existence. 
  • India has embraced Atmanirbharta with renewed focus, turning ambitious ideas into tangible achievements across sectors.
• Historical Milestones of Self-Reliance:
  • Green Revolution (1960s): Ensured food security during droughts.
  • Digital Transformation (1990s): Leveraged talent for national strength.
  • COVID-19 Pandemic: Rapid development of indigenous vaccines showcased scientific and manufacturing self-reliance.
  • Defence Sector: India advancing towards self-reliance in defence systems.

Need for Financial Self-Reliance

• Global Investment Volatility: FDI over $1 trillion since 2000, but 2024 saw 11% drop in flows and 27% fall in project finance deals.
• Risks of External Dependence: Foreign portfolio investments remain volatile, highlighting the need to mobilise domestic resources.
• Principle: Unlocking Bharat’s wealth is essential to fuel national growth.

Gold as a Strategic Asset

• Current Status: Indian households collectively hold close to 25,000 tonnes of gold, the largest private reserve globally, valued at about $2.4 trillion (over 55% of India’s GDP in FY26 terms).
• Paradox: Despite this, India imports around 87% of its gold demand, contributing 8% to the total import bill. 
  • Between 2010–2013, gold imports accounted for nearly a third of the trade deficit.
• Opportunity: This paradox presents a unique chance to mobilise domestic gold for economic growth. 
  • Cultural and civilisational attachment to gold requires trust-based, non-coercive mobilisation strategies rather than restrictions.
• Revitalising Gold Monetisation: Successful models include investing in assaying facilities, creating innovative gold savings products, and digitising gold flows via mobile apps to bring private gold into formal financial channels.

About Gold Monetisation Scheme

• The Gold Monetization Scheme allows individuals to deposit gold in banks and earn interest. The previous attempts failed due to lack of trust and facilities.

Roadmap for Gold Monetisation

• Infrastructure: Expand hallmarking and purity testing centres for reliable valuation.
• Logistics: Banks to manage funds, while secure centres handle gold movement.
• Digitalisation: Enable households to track gold deposits like bank balances.
• Trust: Simplify procedures, remove GST and customs friction, ensure direct returns to depositors.

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Impact of Revived Gold Monetisation

• Lower Borrowing: Funds raised through gold monetisation could cost 4.5%-6.5%, lower than international borrowing.
• Ease Pressure: Mobilising even a fraction of household gold could ease import pressures, strengthen the current account, and create a vast pool of domestic capital for infrastructure, manufacturing, and innovation.
  • There will be an overall shift in mindset toward “Bharat Can Fund Bharat”

Way Forward

• Infrastructure: Expand hallmarking and purity testing centres to ensure trusted valuation nationwide.
• Logistics: Banks can manage funds, while secure collection and testing centres handle gold movement.
• Digitalisation: Household depositors should be able to track their gold balances as easily as bank accounts.
• Trust: Simplify processes by reducing GST and customs scrutiny, ensuring direct returns to depositors without hidden costs.

Conclusion

Bharat can fuel its own growth by harnessing domestic wealth, ingenuity, and resilience. Trust, foresight, and determination will make India truly self-reliant, defining its development on its own terms.

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