Can 1% household gold cut India’s import bill? Mohandas Pai weighs in on proposal

Former Infosys CFO Mohandas Pai has backed a discussion on India’s rising gold imports by reposting a recent Zee Business segment and calling for a temporary waiver on capital gains tax on gold sales by resident Indians.

The discussion featured Zee Business Managing Editor Anil Singhvi and Anand Rathi Wealth Joint CEO Feroze Azeez, who spoke about the economic impact of large-scale gold imports and possible ways to reduce dependence on overseas purchases.

India imported nearly $75 billion worth of gold

During the discussion, Azeez said India imported nearly $75 billion worth of gold last year, amounting to over Rs 6 lakh crore flowing out of the country.

According to him, the high import bill adds pressure on India’s trade deficit and foreign exchange outflows.

He also suggested that if Indian households release even 1 per cent of the gold they currently hold into the market, the country’s dependence on imported gold could decline significantly.

Mohandas Pai reposts discussion, seeks tax relief

Pai reposted the Zee Business discussion on social media and urged the Finance Ministry to consider waiving capital gains tax on gold sales by resident Indians for one year.

Pai said a temporary tax exemption could encourage households to monetise part of their gold holdings, increasing domestic supply and reducing the need for fresh imports.

He argued that lower gold imports would help conserve dollars and support the broader economy.

Gold monetisation debate gains attention again

The discussion has once again brought focus to the issue of gold monetisation and the role of household gold holdings in India’s economy.

Economists and market experts have long argued that a large quantity of gold held by Indian households remains outside the formal financial system. Some believe that bringing even a small portion of this gold into circulation could help reduce import dependence and improve liquidity.

At the same time, analysts note that encouraging households to sell physical gold may remain challenging given cultural and investment preferences tied to the metal.