How Much Gold Does India Really Produce?

Gold holds a special place in India’s cultural and economic life. From temple donations to household jewellery, the country is renowned for its passion for this precious metal. However, most people don’t know that India produces very little gold domestically and is hugely dependent on imports.

In this post, we will learn:

• How much gold India produces every year
• Which states contribute to domestic gold mining
• How India’s gold production compares with imports

Gold Production in India

India’s domestic gold production is very limited, averaging around 1.5–1.6 tonnes per year over the last decade. In contrast, India imports over 800 tonnes of gold annually to satisfy its massive demand.

State-Wise Gold Production

Gold mining in India is highly concentrated in Karnataka, home to the historic Kolar Gold Fields (closed in 2001) and the active Hutti Gold Mines. Other states like Jharkhand and Andhra Pradesh produce only small amounts.

Below is a 10-year snapshot of state-wise gold production in tonnes:

Year	Karnataka(in KG)	Jharkhand(in KG)	Others(in KG)	India Total(in KG)	India Total(in Tonnes)
2012–13	1583	5	Negligible	1588	1.75
2013–14	1556	8	Negligible	1564	1.72
2014–15	1429	11	Negligible	1440	1.59
2015–16	1310	13	Negligible	1323	1.46
2016–17	1580	15	Negligible	1595	1.76
2017–18	1640	8	Negligible	1648	1.82
2018–19	1661	11	Negligible	1672	1.84
2019–20	1724	18	Negligible	1742	1.92
2020–21	1115	11	Negligible	1126	1.24
2021–22	1395	12	Negligible	1407	1.55
2022–23	1411	22	Negligible	1433	1.58

Major Gold-Producing States

Karnataka

• Hutti Gold Mine (Raichur District) is the largest and most significant producer.
• The now-closed Kolar Gold Fields were historically India’s biggest mine.

Jharkhand

• Small-scale production from the Singhbhum Shear Zone.

Andhra Pradesh

• Limited extraction from Ramagiri Gold Field.

Others

• Minor occurrences in Kerala, Rajasthan, and Tamil Nadu, but production is negligible.

India’s Gold Production vs. Imports

Despite this domestic mining, India imports the bulk of its gold consumption, largely for jewellery, investment, and religious donations.

Quick Comparison:

• Domestic production: ~1.6 tonnes/year.
• Annual imports: ~800–900 tonnes/year.

This means more than 99% of India’s gold is imported, which has significant impacts on the trade deficit and foreign exchange reserves.

Frequently Asked Questions

Q. Why is India’s gold production so low?

India’s geology has limited large-scale gold deposits. Mines like Kolar became uneconomic and were shut down, leaving only a few viable sites such as Hutti.

Q. Could India increase gold production?

Some exploration is ongoing, but large new discoveries have not been reported. Production is expected to remain modest.

Q. Which state dominates gold mining?

Karnataka has been, and remains, the main gold-producing state.

Conclusion

India’s gold mining industry plays a small but symbolic role in the nation’s economy, contributing a fraction compared to massive gold imports and extensive household holdings. To understand India’s broader gold position, you can also explore Top Gold Reserve Holding Countries in 2025: Where Does India Stand? and India’s Gold Reserves 2000–2025: A Strategic Shift in National Wealth.

Sources: Indian Bureau of Mines – Annual Reports, World Gold Council
Data Analysis & Insights: Indiagraphs.com – Turning Data into Stories