Gold demand in India soared by 31% in value terms to ₹5.15 lakh cr in 2024

With gold prices reaching record highs, total gold demand in India rose by 5% to 802.8 tonnes in 2024, compared to 761 tonnes in 2023. In value terms, total gold demand surged by 31% to ₹515,390 crore in 2024, up from ₹392,000 crore in the previous year, according to data from the World Gold Council (WGC).

"This was facilitated by multiple record-high gold prices, a reduction in import duty, investment demand, and purchases related to weddings and festivals," said Sachin Jain, Regional CEO, India, World Gold Council.

While the total value of jewellery demand increased by 22% to ₹361,690 crore from ₹296,610 crore in 2023, tonnage demand fell by 2% to 563.4 tonnes compared to 575.8 tonnes in 2023. The WGC attributed this decline to the resilience of gold jewellery demand in India, the impact of the duty cut in July, and India's stronger economic growth compared to other markets. Many consumers purchased gold jewellery in late Q3 when the duty cut mitigated much of the recent price increase.

Total gold investment witnessed strong growth of 29% in 2024, reaching 239.4 tonnes—the highest since 2013—compared to 185.2 tonnes in 2023, reinforcing gold’s status as a safe-haven asset. Similar to other markets, investment demand was bolstered by rising gold prices throughout the year. After the July duty cut, prices resumed their upward trend, and a subsequent correction in November attracted investors looking for lower-priced purchases. Consistent ETF demand throughout the year, coupled with strong festival-related buying during Dhanteras and Diwali, further supported investment demand. This trend was also enhanced in major metropolitan cities by e-commerce platforms offering rapid delivery of small gold investment bars and coins, said the WGC.

The Reserve Bank of India purchased 73 tonnes of gold in 2024—more than four times its gold purchases of 16 tonnes in 2023, the WGC reported. The agency estimates that gold demand in 2025 will range between 700 and 800 tonnes.

The WGC expects gold jewellery demand to recover, driven by wedding-related purchases, provided there is some level of price stability. Additionally, strong gold investment demand is anticipated to continue, with increasing interest from retail investors in gold ETFs, digital gold, and physical coins and bars.