Gold production in India, the world's largest importer and consumer of the metal, rose to 1.45 tonnes in the two months of April and May from 1.24 tonnes in the same period a year ago, a government statement said.
India imports more than two-thirds of its annual gold consumption of 600 to 700 tonnes as output is low because of slow exploration of India's resources.
Industry experts say local production will rise in the long-run, with more companies taking an interest in exploration.
State-owned Hutti Gold Mines Ltd produced 666.12 kg in April and May, while copper and aluminium maker Hindalco Industries Ltd produced 781 kg, the statement said.
Hutti Gold is the only company processing the metal in India from the ore stage. Hindalco produces gold as a by-product of refining copper.
India produced 10.2 tonnes of in the year ended in March, up from 8.45 tonnes in the previous year.
Industry experts say annual gold output in India could grow to between 200 and 300 tonnes in a decade, as the government has liberalised the sector. Mining was opened to the domestic private sector in 1993 and foreign investment was allowed by 1999.
Earlier this year, gold exploration firm Deccan Gold Mines Ltd said initial surveys gave encouraging results and there were bright prospects for commercial gold mining in the country.
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