Mumbai— India’s gold demand surpassed 800 tonnes in 2024, fueled by strong jewelry consumption and growing interest in gold-based investments, according to a report released Tuesday by Zerodha Fund House.
India emerged as the world’s largest consumer of gold jewelry, with total consumption reaching 563 tonnes—valued at approximately ₹3.6 lakh crore. Gold remains deeply embedded in Indian cultural traditions, especially during weddings and festivals.
In addition to jewelry, investment demand surged significantly. Indians purchased 239 tonnes of gold in bar and coin form—worth around ₹1.5 lakh crore—marking a 60% increase over 2023 and placing India as the second-largest global investor in physical gold assets.
The report also highlighted rising interest in gold exchange-traded funds (ETFs). Over the past five years, gold ETF holdings in India tripled from 21 tonnes to 63 tonnes.
A separate report by the National Stock Exchange (NSE) noted that gold-backed ETFs witnessed strong global and domestic inflows. In the first quarter of 2025 alone, global net inflows into gold ETFs reached $21 billion, or 226 tonnes—the highest since Q2 2020.
Gold also outperformed all major asset classes in FY25, delivering a 41% return in dollar terms, the NSE report added. The Reserve Bank of India has mirrored this trend, becoming the third-largest official gold buyer globally over the past three and five years. Gold now accounts for over 11% of India’s forex reserves.
Analysts attribute the surge in gold demand and prices to persistent global economic uncertainty, prompting investors to seek safety in the traditionally stable asset. (Source: IANS)
