The world of gold has witnessed a significant transformation in recent years, with India emerging as the largest consumer of gold jewellery, accounting for a substantial portion of the global demand.
- Gold is a highly valued commodity in Indian culture, particularly during weddings and other auspicious occasions.
- Its use is widespread, with a significant portion of the total consumption being attributed to jewellery.
- Apart from jewellery, Indians are also investing heavily in gold in the form of bars and coins.
Gold continues to hold a significant place in Indian culture, with its use being widespread across various sectors. The country’s total consumption of gold jewellery reached 563 tonnes in 2024, with the value of this consumption estimated at around Rs 3.6 lakh crore.
| Country | Gold Consumption (tonnes) | Value (Rs crore) |
| India | 563 | 3,600 |
The surge in gold consumption is attributed to a rise in jewellery consumption and increased investments in gold exchange-traded funds (ETFs). Indians are increasingly turning to gold as a safe-haven asset, driven by global economic uncertainty. “Gold is a symbol of prosperity and wealth in Indian culture, and its use is deeply ingrained in our traditions and customs.” said a jewellery expert. In addition to jewellery, Indians are also investing heavily in gold in the form of bars and coins. In 2024, the country purchased 239 tonnes of gold in bar and coin form, valued at approximately Rs 1.5 lakh crore. This marks a 60 per cent increase compared to 2023, making India the second-largest investor in gold bars and coins globally.
- Gold ETFs have seen significant growth in India over the past five years, with holdings increasing from 21 tonnes to 63 tonnes.
- Indian investors are increasingly showing interest in gold ETFs, driven by the country’s growing economy and increasing demand for safe-haven assets.
The report by Zerodha Fund House also highlighted that Indian investors are increasingly showing interest in gold ETFs. Over the past five years, gold ETF holdings in India have grown from 21 tonnes to 63 tonnes. “Gold ETFs offer a convenient and liquid way for investors to invest in gold, with the added benefit of diversification.” said a financial expert. In the first quarter of 2025, net inflows into gold ETFs reached $21 billion, equivalent to 226 tonnes — the highest since the second quarter of 2020. According to the National Stock Exchange (NSE), gold outperformed all other asset classes in FY25, delivering a 41 per cent return in dollar terms. “The surge in gold prices is largely attributed to global economic uncertainty, which has led many investors to turn to gold as a safe-haven asset.” said the NSE in its report on Monday. The RBI has also taken note of this trend, with gold now making up over 11 per cent of its forex reserves. In conclusion, the surge in gold demand in India is a reflection of the country’s deep-rooted cultural and economic ties to the precious metal. As global economic uncertainty continues to persist, it is likely that India’s demand for gold will continue to rise, driven by the country’s growing economy and increasing demand for safe-haven assets. The report by Zerodha Fund House serves as a testament to the growing importance of gold in India’s economy, with the country emerging as the largest consumer of gold jewellery in 2024. “Gold is a symbol of prosperity and wealth in Indian culture, and its use is deeply ingrained in our traditions and customs.” said a jewellery expert. The rise of gold ETFs in India has also provided investors with a convenient and liquid way to invest in gold, with the added benefit of diversification. As the world continues to grapple with global economic uncertainty, it is likely that India’s demand for gold will continue to rise, driven by the country’s growing economy and increasing demand for safe-haven assets.
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