New Delhi: Total consumer demand of gold in India increased to 802.8 tonnes in 2024, which is 26 per cent of the global gold demand taking India at second rank, next just to China with consumer demand of 815.4 tonnes, according to an SBI Research report.
Domestic supply of gold is only a fraction of the total supply of gold in India, with imports contributing around 86 per cent of the total supply in 2024 (the World Gold Council estimate). Gold imports increased around 31 per cent in FY24 and 27 per cent in FY25.
However, higher prices have led to lower demand for gold in 2025. In Q3 2025, consumer demand for gold declined by around 16 per cent year-on-year, driven by reduced jewellery demand, said the report by Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI.
Higher prices have reduced gold imports by 9 per cent to $26.5 billion in the April-September period in FY26, from $29 billion during the same period in FY25.
“Another interesting trend visible is the increase in gold reserves by the central banks. The RBI gold reserves rose to 880 tonnes in 2025 as part of strategic reserve management,” said Dr Ghosh.
Return on gold has been comparable to the equity market (Sensex) over a 5, 10 and 15-year period; however, it far exceeds market return over a 1 year and 3 year period.
