According to an SBI Research analysis, India’s total consumer demand for gold rose to 802.8 tonnes in 2024, or 26% of the world’s total, placing it second only to China with 815.4 tonnes. The World Gold Council estimates that imports will account for about 86% of India’s overall supply of gold in 2024, with domestic supply making up only a small portion of this total. Imports of gold rose by about 31% in FY24 and 27% in FY25. But in 2025, demand for gold has decreased due to rising prices.
According to a research by Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor at SBI, consumer demand for gold fell by almost 16% year over year in Q3 2025 due to decreased demand for jewelry. Gold imports decreased by 9% to $26.5 billion during the April–September period in FY26 from $29 billion during the same period in FY25 due to higher prices. “The central banks’ growing gold reserves are another intriguing trend. As part of strategic reserve management, the RBI’s gold reserves increased to 880 tons in 2025, according to Dr. Ghosh.
Gold has matched Sensex returns over 5–15 years and outperformed in 1–3 years. New gold discoveries in Odisha, Madhya Pradesh, and Andhra Pradesh could reduce import pressure and benefit the current account. Since November 2015, the government has issued 67 Sovereign Gold Bond tranches, with 125.3 tonnes outstanding as of October 2023.
