1 month ago
India's Gold Demand Falls 6% Despite Record Spending
India bought less gold in the last quarter of 2026 than it did the same time last year.
People bought fewer jewellery pieces, but they still spent a lot of money on gold because it is seen as a safe investment.
The government raised the tax on gold and asked people to buy less, which made some buyers wait.
The price of gold is still high, so some people are looking for cheaper ways to buy it, which can lead to illegal trading.
Experts think the total amount of gold India will buy this year will be between 650 and 750 tonnes.
Total gold demand fell 6% YoY to 131.4 tonnes in Q2 2026.
Jewellery demand dropped 15% to 75.1 tonnes, while bars, coins, and ETFs rose 9–62% in volume.
Value of consumption rose 50% to ₹1.98 lakh crore, a record for the period.
Higher customs duty (15%) and Prime Minister Narendra Modi’s appeal to curb gold purchases contributed to the decline.
WGC projects full‑year demand between 650–750 tonnes, with smuggling and grey‑market inflows a major risk.
- Who
- Sachin Jain (WGC Regional CEO, India) and Prime Minister Narendra Modi
- What
- India's gold demand fell 6% year‑on‑year in the April‑June 2026 quarter
- Where
- India
- When
- April to June 2026
- Why
- Higher customs duty, Modi’s appeal to curb gold purchases, high prices, and grey‑market risks
Key facts
- Total demand (Q2 2026)
- 131.4 tonnes
- Jewellery demand (Q2 2026)
- 75.1 tonnes
- Value of consumption (Q2 2026)
- ₹1.98 lakh crore
- Customs duty on gold
- 15%
- Full‑year demand estimate
- 650–750 tonnes
Quotes
Sachin Jain, Regional CEO-India, World Gold Council
Senior executive of the World Gold Council
“"As we head into the festive season back home followed by holiday season in the West, the RBI Monetary Policy next week along with the US Fed’s decision in September and onwards along with other development at both at a domestic and global level will play a crucial role in defining the performance of the yellow metal, and ultimately, jewellery sales."”
thehansindia.com
“"We still see demand in the range of 650 to 750 tonnes for this year. However, given the current geopolitical landscape, interest rates, and inflation, I think we should be somewhere in the middle of this range. If there is more correction in gold prices and the customs duty is reduced, then we could get to the upper end of this range."”
thehansindia.com
Sources
Costlier gold dampens demand, consumption value soars
India gold demand falls 6 per cent in April to June despite record spending, says World Gold Council - Telegraph India
India's Q2 gold demand falls 6 pc; investment demand stays resilient
India’s gold demand falls 6% as volatile prices turn away consumers
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