India’s $3.5 trillion gold holdings show it’s far from a ‘dead economy’: Gurmeet Chadha

Wed Sep 17 2025

India’s massive gold holdings, totaling nearly $3.5 trillion across households, RBI, and religious institutions, highlight its economic resilience. Gurmeet Chadha countered the “dead economy” tag amid global uncertainties, citing robust Q1 FY26 GDP growth of 7.8% and strong domestic consumption, services, and manufacturing, underscoring India’s sustained financial strength.

India’s love for gold is once again a talking point — this time highlighting its economic strength. Gurmeet Chadha, Managing Partner & CIO at Complete Circle, has underscored India’s massive gold holdings, estimated at nearly $3.5 trillion, as a sign of the country’s deep-rooted wealth and resilience.

Chadha, in a post on X, noted that Indian households hold around 26,000 tonnes of gold, the Reserve Bank of India owns 900 tonnes, and temples and gurudwaras collectively hold another 4,000 tonnes. “Total we have 32,000 tonnes of gold… almost $3.5 trillion. We are a dead economy?” Chadha wrote, indirectly countering the “dead economy” label previously applied to India.

Chadha’s comment comes against the backdrop of global economic uncertainties and India’s own growth narrative, highlighting how the country’s gold obsession remains a pillar of its financial strength. By pointing to this staggering figure, he challenged the notion of India being a “dead economy,” a phrase previously used by U.S. President Donald Trump in critical remarks about India’s trade and economic policies.

In August, Trump repeatedly criticized India over trade tariffs and its close ties with Russia, calling India’s economy “dead.” He said, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.” He also announced 25% tariffs on Indian goods and labeled Indian tariffs on U.S. exports as “very high,” among the highest in the world.

Subsequent data, however, highlighted India’s growing economy, dismissing the “dead economy” label. GDP numbers for Q1 FY26 (April–June 2025) came in at a robust 7.8%, marking a five-quarter high and beating most forecasts. This followed 7.4% growth in the previous quarter and 6.7% in the same quarter a year ago, indicating sustained momentum despite global challenges.

Far from being “dead,” the Indian economy appears to be firing on multiple cylinders, supported by strong domestic consumption, robust services sector performance, and rising manufacturing activity.

Chadha’s post has spotlighted India’s economic strength, with many agreeing that the country’s massive gold reserves, growing GDP, and stable macroeconomic indicators make it far more robust than detractors have claimed.

The comments sparked widespread debate, with many viewing them as politically charged statements rather than a full reflection of India’s actual economic health.

Source: https://economictimes.indiatimes.com