Sovereign gold bonds help save $3.3 billion in India's gold import bill

The government launched the first SGB in November 2015, and the first two issues have matured giving significantly high tax-free returns to investors

In 2023-24 (FY24), the Reserve Bank of India sold sovereign gold bonds (SGBs) worth 44.3 tonnes, marking the highest-ever response to the instrument since its introduction in November 2015.

In terms of value, with SGBs valued at $3.26 billion in FY24, it is expected to save 7-8 per cent of the country’s annual import bill for the precious yellow metal.

Experts suggest that this is an opportune time for the government to implement more measures to popularise SGBs and further reduce gold import bills, which have already reached $37.86 billion in the first 10 months (April-January) of FY24.

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