India discovers massive gold reserves in Odisha. Here is why it hardly matters

India has confirmed today that new gold reserves were discovered across Odisha, specifically in the Deogarh, Keonjhar, and Mayurbhanj districts, according to official government disclosures in the Assembly.

The announcement directly lines up with a 2023 report from the Geological Survey of India, which had identified potential gold-bearing zones in the region during an earlier survey. Odisha’s Mines Minister Bibhuti Jena told the Assembly, “Gold reserves have been identified in multiple districts,” and added that Malkangiri, Sambalpur, and Boudh are also believed to contain deposits.

No official figure has been provided by the Indian government as of now. The discovery has been labeled “massive,” but there is no confirmed estimate of how many metric tons were found. As of 2023, India held only 70.1 metric tons in total gold reserves.

Even if the Odisha find turns out to contain 10 to 20 metric tons, which is a realistic guess based on geological indicators, it will still barely touch India’s annual gold import volume of 700 to 800 metric tons.

India’s mining gap stays wide even after Odisha’s discovery

India currently mines 1.6 metric tons of gold per year, according to industry records from 2020. That’s less than 0.25% of what it imports. This means the country remains heavily dependent on foreign gold even after the Odisha development, so while the discovery could help expand domestic mining operations, the lack of extraction data or a mining timeline makes its actual impact unclear.

The Indian government hasn’t released any plans to begin mining or refining gold from the new zones, and there’s no word yet on when a full-scale geological assessment will be completed. The announcement, while timed closely with increasing BRICS discussions around gold-backed alternatives to the U.S. dollar, doesn’t offer any direct roadmap for how the gold will be utilized. The BRICS bloc—Brazil, Russia, India, China, and South Africa—has been exploring the idea of a currency backed by gold, and India’s position in that group remains weak due to its extremely low production numbers and high import bills.

China’s 1,000-ton gold find makes India’s look like a footnote

In November 2024, China announced a 1,000-metric-ton gold discovery in central China, with an estimated market value of $83 billion. This find is likely the largest gold deposit ever discovered, bigger than South Africa’s South Deep mine, which holds 900 metric tons. The Chinese government immediately confirmed the scale of the discovery and fast-tracked plans to begin extraction.

Unlike India, China already holds over 2,000 metric tons in gold reserves and produces 380 metric tons annually, representing about 10% of global gold output. India’s total mining capacity doesn’t even reach 2 metric tons. That gap puts China in a completely different category when it comes to gold strategy and financial leverage.

The Chinese discovery strengthens its ability to push forward a BRICS gold-backed currency, something the bloc has been discussing for years as a counter to U.S. dollar dominance. With the November discovery, China has more influence to push the bloc toward using gold as the foundation for international settlements. While India is a top consumer of gold, it has no significant role on the supply side.

The Chinese government, unlike India’s, has the infrastructure, extraction technology, and political support needed to scale operations quickly. China has already begun preparing the mining zone for full production. Meanwhile, India still doesn’t know how much gold it even found.

Russia’s gold stash now ranks fifth in the world

On March 1, 2025, Russia’s gold reserves reached $217.4 billion, pushing the country past China in total value of holdings and placing it fifth globally. As reported by RBC, gold now accounts for 34.4% of Russia’s total foreign reserves. Russia has been increasing its gold buying activity for more than a decade, ramping up purchases after the 2014 annexation of Crimea and even more aggressively after sanctions were imposed by Western governments.

In 2017, Russia purchased 224 metric tons of gold, primarily by cutting back its U.S. Treasury holdings. The decision to swap dollars for gold was part of the Kremlin’s plan to reduce dependency on U.S. financial systems and avoid dollar-linked vulnerabilities. The Central Bank of Russia said it remains committed to growing its gold portfolio.

Despite this jump, the United States still holds the most gold reserves in the world, totaling 8,133.5 metric tons, which makes up over 74% of its foreign exchange reserves. Germany, Italy, and France also maintain significant stockpiles, each holding more than 2,400 metric tons, with gold comprising over 70% of their reserves.

As India watches these numbers grow, its own gold policy remains unclear. No statement has been released from the Reserve Bank of India on whether the Odisha discovery will play a role in long-term reserve planning or monetary strategy.

Gold demand surges while India stays on the sidelines

According to the World Gold Council, global demand for gold hit 4,900 metric tons in 2024, setting a new record. The surge was caused by heavy central bank purchases and high investor demand amid economic instability and geopolitical tensions. Over the course of the year, gold prices broke records 40 separate times, rising 27% overall.

As of March 20, 2025, the official gold price in Russia was reported at 8,181 rubles per gram, which puts a 10-kilogram gold bar at 81.8 million rubles, or about $1.09 million. The price increase reflects how central banks are treating gold—not as an asset, but as a necessity.

India’s position in the global gold economy remains limited to consumption. Without clear mining figures, a working strategy, or tech capabilities, the Odisha discovery stays in the realm of announcements—not production.

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