India’s gold consumption soared beyond 800 tonnes in 2024, fueled by strong jewellery demand and increased investments in gold exchange-traded funds (ETFs), according to a report by Zerodha Fund House.
India retained its position as the world’s largest consumer of gold jewellery, with 563 tonnes purchased in 2024, amounting to US Rs. 3.60 billion. Gold remains a deeply embedded cultural asset, especially during weddings and auspicious occasions, reinforcing its status as a preferred wealth symbol.
Apart from jewellery, India witnessed a 60% jump in purchases of gold bars and coins, totaling 239 tonnes, valued at US Rs. 1.50 billion—securing the country’s place as the second-largest global investor in physical gold.
Investors are also flocking to gold-backed ETFs, with holdings growing from 21 tonnes to 63 tonnes over five years. The National Stock Exchange (NSE) noted that gold ETFs saw net inflows of $21 billion in Q1 2025, equivalent to 226 tonnes, marking the highest increase since 2020.
Gold outperformed all asset classes in FY25, delivering a 41% return in dollar terms, while the Reserve Bank of India (RBI) ranked as the third-largest official buyer over the past three and five years. Gold now comprises over 11% of India’s forex reserves, reinforcing its role as a strategic financial asset amid global economic uncertainty.
With volatility in global markets persisting, investors continue to turn to gold as a safe-haven investment, sustaining its upward trajectory in demand and valuation.
