The Geological Survey of India (GSI) has confirmed a major gold discovery that could change the economic future of Rajasthan. On October 23, 2025, the agency announced the identification of a third gold-bearing zone in Kankariya village of Banswara district, further strengthening the region’s growing reputation as India’s emerging “gold capital.” This revelation follows earlier discoveries in Bhukia and Jagpura and is being hailed as one of the largest gold finds in the country in recent decades. The newly confirmed deposit, located in the southern part of the state, carries immense industrial and economic potential. Early estimates suggest that more than 222 tonnes of pure gold could be extracted from over 940 hectares of mineralised land.
The discovery has not only placed Banswara firmly on India’s mineral map but also triggered fresh discussions about how it could shape the nation’s gold industry, reduce import dependence, and provide large-scale employment in the tribal-dominated region. At a time when global gold prices are soaring due to economic uncertainties and geopolitical tensions, this find comes as an encouraging development for India, which remains one of the world’s largest gold consumers.
Gold exploration in Rajasthan is not new. The Banswara belt has long been known for its mineral potential, but it is only in recent years that detailed surveys and advanced exploration techniques have revealed its true scale. The GSI’s latest confirmation comes after decades of studies and several rounds of exploration across different geological stages. Traces of gold in the Bhukia-Jagpura area were first detected as early as 1990–1991 when GSI was conducting copper exploration in the region. Over time, continued research and the use of advanced geophysical tools helped identify large-scale gold mineralisation in the Aravalli Fold Belt rocks, which are known to host base metals and precious elements.
The pace of exploration picked up considerably in the 2000s, with the GSI identifying Bhukia as a high-potential site. Samples collected during that phase confirmed the presence of hydrothermal gold mineralisation, with concentrations reaching up to 4 parts per million in specific rock formations. These findings encouraged the Rajasthan government and the central authorities to include the region in future mineral development plans. In 2021 and 2022, a revision under the Obvious Geological Potential (OGP) category brought to light new mineralised zones in the Udaipur-Banswara belt, including areas such as Ghatiyan.
The turning point came in 2024 when Rajasthan took its first steps toward commercial gold mining. The state government launched e-auctions for gold blocks in Bhukia-Jagpura and Kankariya-Gara through the MSTC portal—an unprecedented move for Rajasthan. Hindustan Zinc Limited, a subsidiary of Vedanta, emerged as one of the qualified bidders. Though the initial auction process faced delays and cancellations due to bidder defaults, renewed tenders were submitted in October 2025, with bids expected to open on November 3.
The GSI’s October 2025 announcement added a new chapter to this story. The third gold zone, confirmed in Kankariya village of Ghatol tehsil, is classified under the G-3 stage of exploration, meaning it contains inferred resources that require further investigation for exact quantification. The exploration covered approximately 2.059 square kilometres, of which 0.9137 square kilometres were found to be mineralised. Surveys indicate that the deposits stretch along nearly three kilometres, marking one of the largest continuous gold-bearing zones in northern India.
What makes this discovery stand out is not only the estimated 222 tonnes of extractable gold but also the geological setting. The deposits occur in Proterozoic rocks of the Aravalli Supergroup, rich in quartz veins, sulfides, and traces of base metals like copper. This composition makes the Banswara belt geologically similar to other well-known gold-producing regions across the world. The Kankariya find extends the Bhukia-Jagpura mineral belt, indicating that the district may host an interconnected gold system across several zones.
The economic implications of this discovery are enormous. At the current market rate of approximately ₹75,000 per 10 grams, the value of gold in the Kankariya block alone could exceed ₹16,500 crore, or roughly $2 billion. If mining begins as planned, Rajasthan could soon produce between 10 and 15 tonnes of gold annually, contributing directly to India’s domestic supply and cutting import dependence. For a country that imports over 800 tonnes of gold every year, this could be a major boost to its trade balance.
Beyond monetary value, the find has strong social and developmental importance. Banswara, known for its predominantly tribal population and limited industrial activity, could experience rapid progress once mining begins. Experts estimate that 5,000 to 10,000 jobs could be created directly in mining, processing, and associated industries. The Rajasthan government has already indicated that 30% of mining revenue will go to local panchayats to ensure community participation and welfare. Skill training programs for tribal youth are also expected to be launched in collaboration with technical institutes and mining companies.
In the long term, the state hopes to turn Banswara into an industrial hub, attracting over ₹10,000 crore in related investments. The region’s proximity to the petrochemical corridor and the growing demand for minerals used in electric vehicle batteries may further enhance its industrial value. Rajasthan’s entry into gold mining will place it alongside states like Karnataka, Andhra Pradesh, and Jharkhand, which have long-standing operations in this sector.
