India’s Gold Demand Falls 6% Despite Record Spending

In the second quarter of 2026, India bought less gold than it did a year earlier, dropping 6% to 131.4 tonnes.

Even though fewer tonnes were bought, the money spent on gold jumped 50% to about 1.98 lakh crore rupees because prices were higher.

The drop happened because the season for buying gold was weak, the government raised the import duty by 15%, and the prime minister asked people to buy less gold.

Jewellery sales fell 15% to 75 tonnes, and people were less interested in buying gold for investment, especially gold ETFs.

The government is worried that the higher duty might encourage smuggling, and police seized more gold in May‑June than in the previous month.