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India’s Love For Gold Pays Off: Wealth Creation, Portfolio Strategy, And What’s Next

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India’s Love For Gold Pays Off: Wealth Creation, Portfolio Strategy, And What’s Next


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Estimates suggest that Indian households collectively hold around 25,000 to 30,000 tonnes of gold, one of the largest private holdings worldwide.

As 2026 unfolds, Indian investors should anticipate gold maintaining its strategic importance amid fluctuating economic conditions.

As 2026 unfolds, Indian investors should anticipate gold maintaining its strategic importance amid fluctuating economic conditions.

Written By Sachin Sawrikar:

Diamonds may have been marketed by De Beers as a woman’s best friend but in so far as Indian women are concerned, it’s gold that has forever held sway over their hearts. Beyond just the utility of gold as jewellery to be flaunted as a status symbol, this non-depreciating asset (unlike a fancy car or a top-end iPhone model, for instance) has had a transformative impact on the wealth of Indian households.

Massive Wealth Creation: $792 Billion Appreciation Since 2011

Between 2011 and 2024, India imported substantial quantities of gold. While these imports initially contributed to widening the trade deficit, the dollar value of these holdings has appreciated dramatically. At current prices near $4,211 per ounce, gold imported during this period has gained about $1.085 trillion in value, an aggregate increase of around 175%.

Year Imported Gold (tonnes) Import Value (USD bn) Current Value (USD bn) Gain (USD bn) Gain (%)
2011 1,081.78 53.92 146.27 92.35 171%
2012 982.69 52.77 133.03 80.27 152%
2013 832.87 39.18 112.75 73.57 188%
2014 798.40 31.21 107.98 76.77 246%
2015 1,047.15 35.02 141.66 106.64 304%
2016 668.27 23.11 90.42 67.31 291%
2017 1,032.93 36.29 139.74 103.45 285%
2018 945.02 31.79 127.93 96.14 302%
2019 836.41 31.24 113.15 81.91 262%
2020 430.10 21.96 58.16 36.20 165%
2021 1,067.70 55.70 144.42 88.72 159%
2022 763.00 38.70 103.25 64.55 167%
2023 800.00 47.00 108.22 61.22 130%
2024 802.80 52.00 108.80 56.80 109%

This gain alone exceeds India’s current foreign exchange reserves, highlighting gold’s extraordinary role as a store of wealth. The total current valuation of India’s gold holdings imported since 2011 stands close to $1.6 trillion. Even gold imported in 2024, valued at $52 billion at the time, is now worth over $108 billion, underscoring gold’s enduring ability to generate wealth. Ironically, many market commentators at the time expressed concern over the impact of gold purchases on India’s forex reserves and trade deficit, not fully appreciating the long-term wealth creation these imports have enabled.

Re-Exports and India’s Role as a Global Jewellery Hub

A portion of this imported gold has been re-exported as jewellery, reflecting India’s global status as a leading hub for craftsmanship and trade. While this flow partially offsets import volumes, it does not diminish the substantial domestic stockpile that forms a cornerstone of financial security for Indian households and institutions alike.

25,000-30,000 Tonnes of Gold Held by Households

Estimates suggest that Indian households collectively hold around 25,000 to 30,000 tonnes of gold, one of the largest private holdings worldwide. At current prices, this translates to roughly $3.4 trillion to over $4.1 trillion in value, making gold one of the most significant components of household wealth in India. This immense stockpile reinforces why gold continues to occupy a central place in Indian culture, savings, and investment portfolios.

A Blockbuster 2025 and the Outlook for 2026

Gold experienced a blockbuster performance in 2025, driven by ongoing geopolitical tensions, elevated inflation concerns, and sustained central bank purchases. For Indian investors, the year was especially rewarding, with gold prices rallying sharply, reaffirming gold’s timeless appeal as both a safe haven and wealth preserver. Globally, the metal’s value benefited from persistent macroeconomic uncertainty, while in India, steady demand from festivals, weddings, and investments kept momentum strong.

Looking ahead to 2026, the outlook for gold remains positive but nuanced. Factors such as central banks’ monetary policies, currency fluctuations, and inflation trends will largely determine gold’s trajectory. Should inflation prove more persistent than expected, gold will continue to serve as a vital hedge against purchasing power erosion. Conversely, aggressive interest rate hikes may introduce short-term pressure on prices, though gold’s intrinsic qualities as a tangible, non-yielding asset will preserve its long-term role in diversified portfolios. Moreover, geopolitical tensions and financial market volatility will remain key drivers of safe-haven demand.

Portfolio Allocation: 5-10% Recommended

Regarding portfolio allocation, financial planners generally recommend allocating between 5%-10% of one’s investment portfolio to gold. This allocation balances gold’s role as a stable hedge and inflation protector with growth-oriented assets like equities. Investors already holding substantial physical gold might diversify by adding gold based funds to improve liquidity and manageability. Ultimately, gold’s unique qualities, capital preservation, inflation hedging, and crisis resilience, make it indispensable in a balanced investment strategy.

New Opportunities Through GIFT City

For investors seeking exposure to gold in 2026, various avenues exist. Resident Indians can consider sovereign gold bonds, gold ETFs, and digital gold platforms, which offer liquidity, convenience, and tax advantages. While the first two are well regulated, there is considerable merit in being sanguine about the latter. So far, investors have not been able to use the GIFT City route to invest in international gold funds, passive or active, that offer exposure to both a hard currency, such as the US dollar and international gold price indexation.

With a change in regulations by the IFSCA, the regulator of the GIFT city, licensed fund management entities now have the ability to launch schemes that invest in commodities such as precious metals. Soon, investors will have exciting new options with the upcoming launches of gold funds domiciled in GIFT City that will allow NRIs and resident Indians to invest in professionally managed physical gold-backed funds through regulated vehicles that offer transparency and global standards.

As 2026 unfolds, Indian investors should anticipate gold maintaining its strategic importance amid fluctuating economic conditions. While price volatility is inevitable, gold’s combination of cultural significance, global macroeconomic dynamics, and its massive accumulated value, ensures it remains a vital component of wealth preservation and portfolio diversification. Leveraging modern investment products alongside traditional holdings will enable investors to optimise returns while managing risks.

(The author is the managing partner of Artha Bharat Investment Managers IFSC LLP)

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DGCA slaps IndiGo with fine of Rs 22 crore for flight disruptions – The Times of India

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DGCA slaps IndiGo with fine of Rs 22 crore for flight disruptions – The Times of India


EW DELHI: The Directorate General of Civil Aviation (DGCA) has slapped IndiGo with the steepest fine ever for an Indian carrier – Rs 22.2 crore – for its massive flight disruptions last month.Additionally, the airline has to submit a bank guarantee of Rs 50 crore whose release is tied to implementing, among other things, the more humane flight duty norms for pilots aimed to enhancing flight safety. The regulator has warned senior airline officials, including the CEO & COO. The senior VP of operation control centre has to be removed from his position.

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The senior VP of operation control centre has to be removed from his position and not given any accountable position in the future. The aviation ministry has ordered “an internal inquiry to identify and implement systemic improvements within DGCA”.The regulator late on Saturday night released key findings of the report by its four-member panel that probed IndiGo schedule collapse last month. The airline’s unpreparedness and consequent inability to implement DGCA’s new flight duty time limitation (FDTL) for pilots has cost it dear. Each day’s exemption given for its Airbus A320 family pilots to ensure the airline was able to start resuming flights staring the second week of Dec is costing it Rs 30 lakh. This works out to Rs 20.4 crore for 68 days between Dec 5, 2025, & Feb 10, 2026.The airline has been fined one-time Rs 30 lakh each on six more counts, which add up the fine to Rs 22.2 crore. The six failures include failure to comply with new FDTL rules, rest periods, “inadequate buffer margins in roster planning… failure to strike balance between commercial imperatives and crew members’ ability to work effectively and failure of accountable management to ensure overall functioning, financing, and conduct of operations to DGCA standards.Between Dec 3 and 5, 2,507 IndiGo flights were cancelled and 1,852 were delayed that left over 3 lakh passengers stranded at airports across the airline’s network. Flights had resumed gradually over the next week or so.What caused the crisis:“Over-optimisation of operations, inadequate regulatory preparedness along with deficiencies in system software support and shortcomings in management structure & operational control on the IndiGo”, have been identified as the “primary causes for the disruption” by the DGCA probe panel. “The airline’s management failed to adequately identify planning deficiencies, maintain sufficient operational buffer, and effectively implement the revised FDTL provisions,” the report says.Action against IndiGo:Apart from fines, the airline’s CEO has been cautioned “for inadequate overall oversight of flight ops and crisis management.” Accountable manager & COO, Isidre Porqueras, has been warned for “failure to assess impact of winter schedule 2025 and revised FDTL leading to widespread disruptions.” Senior VP (ops control centre) has been asked to be relieved from the post and not be given any accountable position in future. Warnings have been issued to flight ops and crew resource planning “for operational, supervisory, manpower planning and roster management lapses.”Way ahead:DGCA has asked IndiGo to take appropriate action against any other personnel identified through its inquiry and submit a compliance report regarding the same. Sources say IndiGo has been made aware of the lapses of its senior officials, especially COO, and now the airline is expected to take action against them. “The findings underscore the need for operational planning, and effective management oversight to ensure sustainable operations and passenger safety & convenience,” report says.IndiGo statement:Confirming receipt of DGCA ruling, airline said it is “committed to taking full cognisance of the orders and will, in a thoughtful and timely manner, take appropriate measures… an in-depth review of the robustness and resilience of the internal processes at IndiGo (is) underway to ensure that the airline emerges stronger out of these events in its otherwise pristine record of 19 plus years of operations”.



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Amid plans to induct Noel’s son, Tata trust cancels meet – The Times of India

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Amid plans to induct Noel’s son, Tata trust cancels meet – The Times of India


MUMBAI: The Sir Ratan Tata Trust (SRTT) cancelled its Saturday board meeting, which was expected to consider the induction of chairman Noel Tata’s son, Neville Tata, as a trustee. In contrast, board meetings of Sir Dorabji Tata Trust (SDTT) and Tata Education and Development Trust (TEDT) proceeded as scheduled.The cancellation suggests that Neville’s appointment may have been pushed back to give trustees more time for discussions – since appointing a trustee requires unanimous approval. No new date for the SRTT meeting has been notified. An email query to Tata Trusts on the cancellation of the board meeting received no response. Sir Ratan Tata Trust (SRTT), Sir Dorabji Tata Trust (SDTT), and Tata Education and Development Trust (TEDT) have several trustees in common. Except for Jehangir HC Jehangir and Jimmy Tata, the other SRTT trustees — Noel, Venu Srinivasan, Vijay Singh and Darius Khambata — also serve on SDTT’s board and participated in its meeting on Saturday, people familiar with the matter said. Jimmy, Noel’s older half-brother, usually does not attend SRTT meetings.Saturday’s development comes amid unresolved issues from the last round of inductions in Nov 2025 when the inductions of Neville and former Titan MD Bhaskar Bhat were approved by SDTT but failed to secure approval at SRTT. SDTT, together with SRTT, controls India’s largest conglomerate, the Tata Group.At the Nov 11, 2025 SDTT meeting, Khambata proposed Neville’s appointment, while Noel proposed Bhat, as TOI reported in its Nov 12 edition. Neither name was on the formal board agenda. All trustees of SDTT approved the appointments (Srinivasan did not attend the meeting as his term had expired). Later, at SRTT’s meeting on the same day, both proposals were put off for consideration at a later date.Srinivasan, who participated in the SRTT meeting, reportedly expressed reservations, stating that these proposals were not on the agenda and that such matters should not be raised under “any other items for discussion.” While items not listed on the agenda can be introduced with the chairman’s permission, Srinivasan suggested they be considered at the next board meeting, according to a person familiar with the discussion.This time, Neville’s appointment was formally listed on the SRTT agenda but the meeting was cancelled. Bhat’s name did not appear on Saturday’s agenda. Neville participated at the SDTT meeting on Saturday, marking his first formal role at the flagship foundation.



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Number of SMEs in Scotland down since 2020, figures from Lib Dems show

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Number of SMEs in Scotland down since 2020, figures from Lib Dems show



New figures from the Scottish Liberal Democrats show that small businesses have declined in Scotland since 2020.

The party’s economy spokesman, Jamie Greene MSP, has called on the SNP Government to urgently boost support for small businesses as he revealed significant drops in the number of small or medium-sized enterprises (SMEs) across Scotland.

Mr Greene asked the Scottish Government to provide the number of SMEs in every Scottish parliamentary constituency in each year since 2015.

The data showed that since 2020, the number of SMEs in Scotland has fallen from 177,020 to 171,660 – a decline of 5,360.

Over the past decade, 24 parliamentary constituencies have seen a fall in the number of SMEs, with notable declines in more rural parts of the country, according to the Scottish Liberal Democrats.

This includes a 13.8% fall in SMEs in constituencies across Aberdeen and Aberdeenshire since 2015, and an 8% fall in Caithness, Sutherland and Ross.

The Scottish Liberal Democrats have secured tens of millions in support for business in this year’s draft Scottish budget, including a new £2.5 million package backing young entrepreneurs and an initial £36 million for business rates relief.

Mr Greene said: “These figures show concerning drops in the number of small and medium-sized businesses across Scotland.

“I’ve spoken to lots of skilled and entrepreneurial people who feel there are too many barriers to starting their own business, from the SNP’s economic incompetence to the crushing burden of red tape.

“I am pleased that Scottish Liberal Democrats secured some support for businesses in the draft budget, but we think the Scottish Government can go further.

“That’s why, in the coming weeks, we will be squeezing the Scottish budget for every penny to deliver for businesses.”

Deputy First Minister Kate Forbes said: “Entrepreneurs and start-up companies are the backbone of our economy and the Scottish Government has been working systematically to develop the pipeline of support required to help them develop, grow and prosper.

“The facts show that we are making clear progress in establishing the right conditions to help business founders succeed.

“There was a 17.9% increase in Scottish start-up businesses in the first half of 2025, while investment deals in Scotland grew by 24% in the first half of 2025 compared to the second half of 2024.

“The Scottish Budget 2026-27 continues to support business, investment and a skilled workforce to accelerate economic growth, including record funding for our entrepreneurs and start-ups as we act to harness Scotland’s strengths and opportunities to drive long-term prosperity.”



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