India Claims No. 1 Spot In Gold Jewelry Consumption, Leaving China Behind; Know More

India has overtaken China to emerge as the world's largest consumer of gold jewelry in 2024. The World Gold Council's latest report reveals that India's jewelry consumption surged to an impressive 563.5 tonnes, surpassing China, which reported a consumption of 479.3 tonnes.

The demand for gold jewelry in India is comparatively higher than in other countries due to gold jewelry being a part of India's tradition and culture. According to the report, India's full-year jewelry demand in 2024 was 2% lower than the previous year. However, Q3 saw a strong surge due to a reduction in import duties. However, Q4 demand dropped 5% year-on-year due to high gold prices. The second half of the year witnessed strong buying during the festive Diwali, Dhanteras, and wedding seasons, though price fluctuations and an inauspicious period in December led to a slowdown. Despite this, the total value of gold jewelry demand in 2024 reached INR 3.6 trillion.

Gold imports in India drop

Regardless of the surge in jewelry demand, India's gold imports saw a slight decline in 2024, falling to 712.1 tonnes from 744 tonnes in 2023. This decline highlights an emerging trend in India's gold market-an increasing reliance on recycled gold and domestic sources. With gold prices rising and local recycling efforts intensifying, India is becoming more self-sufficient in meeting its gold demand.

While India's imports of gold have reduced, the country's domestic gold supply continues to play a pivotal role. Increased collection and recycling of old jewelry have contributed significantly to reducing the need for new imports, making the Indian market more sustainable in terms of its consumption habits.

Gold Investment Demand Soars

India's gold investment demand in 2024 grew by 29%, reaching 239.4 tonnes, up from 185.2 tonnes the previous year. According to the World Gold Council (WGC), global gold investment hit a four-year high in 2024, contributing to gold's impressive 26% annual return. This surge in gold investment demand could be due to the geopolitical tensions, which were a major thing last year, inflationary concerns, and a sustained rally in gold prices.

Gold Price in India Touched Record High

The recent escalation of trade war tensions, particularly following retaliatory tariffs from China on US imports, has sent shockwaves through global markets. On February 5, 2025, the 22-carat gold price in Bangalore skyrocketed by Rs. 950 per 10 grams, reaching Rs. 79,050 per 10 grams. In a similar vein, the price of 24-carat gold in Bangalore increased by Rs. 1,040 per 10 grams, reaching Rs. 86,240 at retail. As per the WGC Report, gold prices in India surged by an astonishing 28% in 2024. The rally in gold prices has continued into 2025, with prices already up 11% as of February 5.