Gold or silver in bulk form, such as bars or ingots, valued according to its weight and purity rather than as currency.

Why does bullion matter to India's economy?

Gold is one of India's largest import items, so bullion demand directly affects the trade deficit and the current account balance.

Bullion

noun (uncountable)

/ˈbʊliən/

Gold or silver in bulk, uncoined form — typically as bars, ingots, or coins valued primarily by their metal content and purity rather than their face value or artistry. The Reserve Bank of India holds foreign-exchange reserves partly in gold bullion; as of March 2024, India's gold reserves stood at approximately 822 tonnes, making it among the largest official-sector gold holders in the world. India is the world's second-largest consumer of gold, with bullion demand driven by jewellery, investment, and central bank purchases.

✍️ Usage in a UPSC answer

The Union Budget 2024-25 reduced the basic customs duty on gold bullion from 15% to 6%, aimed at curbing smuggling and stimulating organised jewellery exports under the hallmarking regime.

Synonyms

ingot metalspecie (archaic)gold barprecious metalrefined metal

Antonyms

fiat currencypaper moneycoinage (numismatic)

🌱 Word Family

bullion market (noun phrase), bullion bank (noun phrase), bullionist (noun, historical), bullion reserve (noun phrase)

🔡 Root

Anglo-French bouillon = a boiling, melting place; Old French boillir = to boil; Latin bullire = to bubble

📜 Etymology

From Anglo-French bouillon (mint, melting house), derived from Old French boillir (to boil), reflecting the smelting process. The word entered Middle English in the 14th century. Over time it narrowed from 'a mint or place of melting' to 'the metal itself in ingot form', a semantic narrowing completed by the 17th century.

🧠 Memory Hook

BULLION sounds like 'BOILING' — gold that has been BOILED (melted) and poured into bars. Imagine a bubbling golden liquid cooling into shiny ingots.

🎯 How This Word Works in UPSC Writing

Gold or silver held in bulk as bars or ingots, valued by metal content rather than as coin or ornament. Its GS3 relevance is external-sector arithmetic: gold imports weigh heavily on India's current account deficit, and household demand for the metal is a savings decision as much as a consumption one. That is the link worth writing, rather than a description of the commodity.

⚖️ Don’t Confuse It With

Bullion is precious metal in bulk form valued by weight and purity. Specie is coined money. Reserves, in the central-bank sense, include gold alongside foreign currency assets. Jewellery demand behaves differently from investment demand and the two should not be merged in an answer.

🇮🇳 Hindi Meaning

सर्राफा (sarrāfā) is the standard trade term; स्वर्ण-रजत धातु covers it descriptively.

❓ Common Questions

What is bullion?: Gold or silver in bulk form, such as bars or ingots, valued according to its weight and purity rather than as currency.
Why does bullion matter to India's economy?: Gold is one of India's largest import items, so bullion demand directly affects the trade deficit and the current account balance.

💰 Indian Economy 📖 Seen in: Indian Economy — Growth, Planning & De...

Relevant across:GS3 · Economy, Environment, S&T & Security

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