India's gold consumption in 2025 is expected to fall to a five-year low, with record-high prices dampening jewellery purchases and outweighing a modest uptick in investment demand, the World Gold Council (WGC) said on Thursday.
Demand in the world’s second-largest gold consumer is projected to range between 600 and 700 metric tons this year — the lowest since 2020 and a sharp decline from the 802.8 tons recorded in 2024 — according to Sachin Jain, CEO of WGC India.
Gold consumption could reach the upper end of the forecast if prices stabilise, Jain said, but any further 10–15 percent rise, driven by geopolitical factors, may drag demand closer to the lower end of the range.
Domestic gold prices, which touched a record ₹101,078 per 10 grams in June, have jumped 28 percent so far in 2025, following a 21 percent gain in 2024.
In the April–June quarter, India’s gold consumption dropped 10 percent year-on-year to 134.9 tons, with jewellery demand falling 17 percent and investment demand rising 7 percent.
Demand in the September quarter is also expected to be weaker than the 248.3 tons recorded a year earlier, when a cut in import duties by New Delhi had spurred buying, Jain noted.
Despite the decline in overall consumption, gold continues to outperform other asset classes, attracting investors through both physical bullion and exchange-traded funds (ETFs).
“Gold ETFs in India are at a very important cusp for growth. As India becomes increasingly digitised, these instruments are gaining popularity and prominence,” Jain said.
Inflows into Indian gold ETFs surged ten-fold month-on-month in June to ₹20.81 billion ($237.5 million), the highest in five months, according to data from the Association of Mutual Funds in India (AMFI).