India on the Verge of Becoming the “Golden Bird” Again, Massive Oil Discovery in Andaman & Nicobar and Revival of Gold Mining in Kolar
A few days ago, two significant developments took place in India, which surprisingly did not receive the attention they deserved in mainstream national media. The First Development is the discovery of a massive crude oil reserve in the maritime region of Andaman and Nicobar Islands. It is being claimed that the volume of this oil reserve is so substantial that India could not only meet its domestic crude oil needs but also emerge as a net exporter of crude oil. If India secures ample domestic production, it could develop the capacity to refine and export diesel and petrol globally. Notably, India already hosts the world’s largest oil refinery in Jamnagar, Gujarat. Therefore, with such reserves, India could become the largest exporter of petroleum products as well.
If these claims are validated, India may once again earn the title of the “Golden Bird”—a term used in ancient times to describe India’s wealth. At present, India is the third-largest importer of crude oil, after China and the USA, and spends the largest share of its foreign exchange on oil imports. If domestic production begins, this would significantly reduce foreign exchange expenditure while increasing foreign exchange earnings through petroleum exports. This could position India among the world’s top foreign exchange reserve holders.
Currently, over 85% of India’s crude oil needs are met through imports from around 42 countries, with 46% of these imports coming from West Asia. Every year, India spends over USD 10 billion on crude oil and gas imports.
India’s Minister of Petroleum and Natural Gas, Mr. Hardeep Singh Puri, recently announced that a massive reserve of crude oil and gas has been found in the Andaman & Nicobar maritime region. The estimated volume is around 12 billion barrels (200 billion liters) — comparable to the massive reserve recently discovered in Guyana, which has 11.6 billion barrels of oil and gas. Following this discovery, Guyana is expected to climb to the top ranks in global oil production, despite currently being ranked 17th.
Post-India’s political independence in 1947, the nation didn’t utilize the vast potential of its maritime zone for nearly 70 years. However, recent efforts by the Indian government seem to be yielding results. The exploration phase in the Andaman & Nicobar region is complete, and drilling operations have begun. Upon completion of drilling, the actual volume assessment will be finalized. Rapid infrastructure development is also taking place in the region.
Given the proximity to Indonesia’s Sumatra region, where oil production is already underway, there’s further optimism about large-scale reserves in India’s island territory. Additionally, the area is expected to contain significant quantities of rare earth minerals, a critical resource—especially after China ceased its export of rare earth metals to India.
India already has past discoveries of crude oil and gas in Bombay High, Kakinada, Ballia, and Samastipur, where extraction activities are ongoing. However, oil exploration requires high capital investment. India is exploring technological partnerships with countries like Japan, Russia, and the USA, aiming for cooperation with major companies.
India has a maritime zone of over 500,000 square kilometers. Oil and gas exploration is also underway off the coast of West Bengal, with initial reports indicating possible reserves. Once oil production begins in Andaman & Nicobar, India may not need to import crude oil for the next 70 years.
The Second Positive Development is the revival of gold mining in the Kolar Gold Fields (KGF) of Karnataka. These mines, once world-renowned, were closed in 2001. Now, 25 years later, efforts are being made to resume mining operations, with the Karnataka government granting approval.
With gold prices at historic highs globally and central banks increasing gold reserves due to declining trust in the US dollar, restarting mining at KGF is a strategically crucial move. An estimated 750 kg of gold is believed to be recoverable from these mines. In ancient times, the region was known as the “Golden City of India.”
Historically, India was referred to as the “Sone Ki Chidiya” (Golden Bird) due to its immense wealth. Indian women today are estimated to possess 25,000 to 26,000 tonnes of gold — nearly half of the world’s private gold holdings. During British colonial rule, nearly 900 tonnes of gold were extracted from Kolar and taken to the UK.
Currently, the Reserve Bank of India (RBI) holds 880 tonnes of gold, forming 12% of India’s USD 697 billion foreign exchange reserves. Recent global investor confidence in India suggests that the country is entering another golden era.
Globally, central banks hold about 36,000 tonnes of gold, and many continue to increase their reserves. India currently ranks 8th in global gold holdings. Even China and Russia, the world’s largest gold producers, continue to import gold. For the past three years, central banks worldwide have been purchasing around 1,000 tonnes of gold annually — a trend that is expected to continue.
Therefore, the decision to resume gold mining in KGF is timely. With increasing reserves, India may move towards the internationalization of the rupee, and the value of the Indian currency in global markets is likely to increase.
With these divine blessings and strategic resource discoveries, India is poised to reclaim its historical glory. These developments may very well place the country back on the global map as the “Golden Bird”, not just in symbolic terms, but in tangible economic and strategic strength.
