For a country that requires vast quantities of gold every year, India’s domestic production has long remained surprisingly limited. That imbalance, however, could begin to shift as a new gold mine in Andhra Pradesh prepares to enter commercial production—marking a rare expansion in a sector that has seen little large-scale activity since Independence. India News

The upcoming Jonnagiri gold project signals more than just another mining operation. It represents a structural shift, particularly because it is being led by a private company at scale—something India has not seen in decades, according to a report by Business Standrad (BS).

A new chapter after decades of stagnation India’s modern gold mining journey has been defined by a handful of legacy operations. The Hutti Gold Mines, which began operations in 1947, has long been the country’s primary source of domestically produced gold. Before that, the iconic Kolar Gold Fields, which started in 1880, dominated production until its closure in 2001.

Now, nearly eight decades after Hutti began operations, Jonnagiri is set to become the first large-scale gold mine to start production in independent India. While a small mine in Jharkhand has come up in recent years, its output has remained irregular and insignificant, making Jonnagiri a far more consequential development.

Private sector takes the lead Unlike earlier projects, Jonnagiri is being operated by Geomysore Services, a private-sector company. The venture is backed by Thriveni Earthmovers and Lloyds Metals, which together hold a majority stake, along with Deccan Gold Mines.

What sets this project apart is its integrated approach. The company plans not just to mine gold but also refine it and sell it directly to jewellers under its own brand. The focus, at least initially, is on supplying high-quality gold to local jewellers in Andhra Pradesh, particularly smaller players.

Production targets and future ambitions The project is already in the trial phase, with pre-commercial production underway. Commercial production is expected to begin soon, with a target of around 600 kg of gold by the end of FY27, B Prabhakaran, who is associated with the companies behind the project told BS.

Looking ahead, the company aims to scale up output significantly:

Initial target: ~600 kg by FY27

Long-term ambition: up to 2 tonnes annually (subject to approvals) If the higher target is achieved, Jonnagiri could surpass Hutti to become India’s largest gold producer.

Why now? Global pressures and domestic opportunity The timing of this project is not accidental. With geopolitical tensions making gold imports more expensive, the need for domestic production has become more pressing.

India imports over 800 tonnes of gold annually, and rising global uncertainties have only added to the cost burden. Industry leaders believe that projects like Jonnagiri could reduce dependence on imports and encourage the development of more mines across the country. There is also a growing sentiment that legacy sites like Kolar Gold Fields deserve reconsideration for revival.

Why India fell behind India was not always this far behind. In the 1970s and 1980s, the country’s gold production was comparable to that of major producers like China, Australia and South Africa, with output of around 5 tonnes annually.

Today, the gap is stark:

India: ~1.5 tonnes

China: ~400 tonnes

Australia: ~350 tonnes

South Africa: ~250 tonnes

According to Hanuma Prasad Modali of Deccan Gold Mines, two key factors led to this decline, limited exploration activity andersistent bureaucratic hurdles.

For decades, policy focus remained on minerals like coal, iron ore, zinc and copper, which were seen as more critical for economic growth. Even after the sector was opened to private players in the 1990s, regulatory delays continued to slow progress.

India is estimated to have gold reserves of around 100 tonnes, suggesting that the sector still holds untapped potential.