A major gold discovery in Andhra Pradesh has placed the Kurnool district at the centre of India’s growing domestic gold production. According to the SBI Research report titled “Coming Of (a Turbulent) Age: The Great Global Gold Rush,” India’s first large private gold mine is set to operate in Kurnool, with an estimated annual output of 750 kilograms.
National Gold Discoveries Create New Mining Opportunities
The discoveries made in 2025 are part of a nationwide geological effort. Odisha recorded fresh reserves across Deogarh, Keonjhar, and Mayurbhanj, while Madhya Pradesh confirmed gold deposits in Jabalpur estimated to be in lakhs of tonnes. With the new find in Rayalaseema, Andhra Pradesh joins the list of states witnessing renewed exploration activity. The Geological Survey of India and private agencies have been conducting extensive surveys in the region for several months, leading to the confirmation of a commercially viable site.
Reduction in Gold Imports Expected
India remains one of the world’s largest gold-consuming nations but produces only a small portion of what it uses. The country imported over 800 tonnes of gold in 2024 to meet domestic demand, placing continuous pressure on foreign exchange reserves. As per World Gold Council estimates, nearly 86 percent of India’s gold supply in 2024 came through imports. The Kurnool mine is expected to ease this dependence once production begins, contributing to improvements in the current account balance and strengthening India’s gold-based economy.
Economic Impact and New Jobs in Andhra Pradesh
The mine is expected to generate employment in extraction, refining, logistics, machinery, and technical services. Early development work will include operational infrastructure, environmental clearances, and phased extraction planning. Economists believe the discovery could attract new private investment in mining and bring long-term industrial benefits to surrounding areas. With gold mining historically limited to select states such as Karnataka and Jharkhand, the entry of Andhra Pradesh marks a significant expansion in the sector.
A New Phase for Domestic Gold Production
India is home to one of the world’s largest gold markets, with households holding more than 25,000 tonnes of gold. The addition of a new producing mine in Kurnool signals a shift toward domestic sourcing rather than reliance on imports. The SBI Research report notes that increased domestic output will support jewellery markets, bullion trade, and financial instruments that depend on gold.
The mine is expected to begin phased production after final regulatory approvals and commercial agreements are completed. Once operational, it will establish Kurnool as one of the most important gold-producing regions in the country, marking a new milestone for Andhra Pradesh’s mining sector and India’s broader economic landscape.
