Has India's Gold Demand Exceeded 800 Tonnes in 2024?
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Synopsis
India's gold demand has soared beyond 800 tonnes in 2024, becoming the world's leading consumer of gold jewellery. This surge reflects both cultural significance and investment trends, as Indians turn to gold ETFs and physical gold amidst global economic uncertainty. Discover the implications of this trend on the economy and investment strategies in our detailed report.
Key Takeaways
- India's gold demand exceeded 800 tonnes in 2024.
- 563 tonnes were consumed in jewellery.
- 239 tonnes were purchased in bars and coins.
- Gold ETFs in India grew from 21 tonnes to 63 tonnes.
- Gold yielded a 41 percent return in FY25.
Mumbai, April 29 (NationPress) India's gold demand has exceeded 800 tonnes in 2024, driven by a notable increase in jewellery consumption and a surge in investments in gold exchange-traded funds (ETFs), according to a recent report published on Tuesday.
The report from Zerodha Fund House indicates that India has become the world’s top consumer of gold jewellery in 2024, with total consumption reaching 563 tonnes.
The monetary value of this consumption is estimated at around Rs 3.6 lakh crore. Gold maintains a crucial role in Indian culture, especially during weddings and other auspicious events, where its use is ubiquitous.
In addition to jewellery, Indians are investing significantly in gold in the form of bars and coins. In 2024, the nation acquired 239 tonnes of gold in bar and coin form, valued at approximately Rs 1.5 lakh crore.
This represents a 60 per cent increase compared to 2023, establishing India as the second-largest global investor in gold bars and coins.
The report also underscores the growing interest of Indian investors in gold ETFs. Over the last five years, gold ETF holdings in India have expanded from 21 tonnes to 63 tonnes.
Furthermore, a recent analysis from the National Stock Exchange (NSE) noted that gold-backed ETFs have witnessed robust inflows both domestically and internationally.
In the first quarter of 2025, net inflows into gold ETFs reached $21 billion, translating to 226 tonnes -- the highest level since the second quarter of 2020.
According to the NSE, gold outperformed all other asset classes in FY25, yielding a 41 per cent return in dollar terms.
“India demonstrated this trend, with the RBI ranking as the third-largest official buyer over the past three and five years, and gold now constituting over 11 per cent of its forex reserves,” stated the stock exchange in its report on Monday.
The increase in gold prices is largely attributed to global economic uncertainty, prompting many investors to seek gold as a safe-haven asset.
Point of View
I believe that the remarkable rise in India's gold demand reflects not only our cultural affinity for gold but also our strategic investment choices in times of global economic uncertainty. This trend underscores the importance of gold as a safe asset for many Indian investors.
NationPress
22/05/2025
Frequently Asked Questions
What drove the increase in gold demand in India?
The surge in gold demand was primarily driven by a rise in jewellery consumption and increased investments in gold exchange-traded funds (ETFs).
How much gold did India consume in jewellery in 2024?
In 2024, India consumed a total of 563 tonnes of gold in jewellery.
What is the value of gold consumption in India?
The value of gold consumption in India is estimated at approximately Rs 3.6 lakh crore.
Has India's investment in gold bars and coins increased?
Yes, India purchased 239 tonnes of gold in bar and coin form in 2024, marking a 60 percent increase compared to 2023.
What was the return on gold in FY25?
Gold delivered a 41 percent return in dollar terms in FY25.
