The demand for gold across India was about metric tons in 2025. This represented a decrease compared to the previous year, when the gold demand was metric tons.
Gold supply
Gold demand in India is principally met through imports. India is one of the leading countries for gold imports. In financial year 2022, the value of India’s gold imports was estimated at over trillion Indian rupees. The import of gold was a major cause for the country’s trade deficit. To curb imports, the Modi government changed India’s gold import policy. This was done by introducing a higher import duty and allowing import only via nominated agencies, which were notified by the Reserve Bank of India and the Directorate General of Foreign Trade. The country produces a minimal amount of its gold needs through local mining. The volume of gold mined in India has remained below metric tons since the financial year 2013, while a small amount is also generated by recycling the precious metal.
Reasons to purchase gold
Gold purchases are considered an important source of investment. Weddings and festivals across the country lead to major gold sales. Around percent of annual sales come from Deepavali, the Hindu festival of lights. The precious metal is considered auspicious and is worn on important occasions and ceremonies in India, mainly in the form of jewelry. Since 2010, more than metric tons of gold jewelry are consumed in the country every year.