New Delhi: India’s total consumer gold demand rose to 802.8 tonnes in 2024, representing 26% of the global gold consumption. China remains the world’s largest gold consumer with 815.4 tonnes in 2024, slightly ahead of India, according to SBI Research report November 5, 2025.
Domestic gold supply meets only a small fraction of India’s total demand. Consequently, imports covered around 86% of demand in 2024. The World Gold Council reported that imports grew about 31% in FY24 and 27% in FY25. Therefore, India relies heavily on imported gold for both consumer and industrial purposes.
However, rising gold prices affected demand in 2025. In Q3 2025, consumer purchases fell roughly 16% year-on-year, primarily due to lower jewellery sales. Dr. Soumya Kanti Ghosh, SBI’s Chief Economic Advisor, explained that higher prices influenced both investors and buyers, reducing overall consumption.
Gold imports also declined by 9% to $26.5 billion during April-September FY26, down from $29 billion the previous year. Meanwhile, central banks expanded their reserves. For example, the Reserve Bank of India increased its holdings to 880 tonnes in 2025 to strengthen strategic reserves.
Over the long term, gold returns matched equity market gains over five, ten, and fifteen years. Moreover, it outperformed equities over one- and three-year periods. These trends emphasize gold’s role as an investment and a hedge against inflation, providing stability during market fluctuations.
Additionally, new domestic gold discoveries could reduce import dependence. Odisha districts like Deogarh, Keonjhar, and Mayurbhanj hold 1,685 kg of gold ore. Jabalpur in Madhya Pradesh and Kurnool in Andhra Pradesh will add substantial production, with Kurnool producing 750 kg annually as India’s first large private gold mine.
The government has promoted investment through Sovereign Gold Bonds (SGBs) since 2015. With 67 tranches issued, outstanding SGBs stood at 125.3 tonnes by October 2025. Accounting for redemption and issuance costs, the government faces a Rs 93,284 crore cost, while investors benefit from rising gold prices.
These developments, including higher reserves, new mines, and SGBs, demonstrate India’s evolving gold market, balancing supply, imports, and investment trends.