Gold market in India - statistics & facts

India’s pronounced preference for gold and deep-rooted cultural significance has gradually led to the development of a thriving gold-based financial market in the country. The precious metal plays a multifaceted role as a wealth-preserving asset, a hedge against inflation, and collateral for securing loans. It is no surprise that the country is the fifth-largest importer of gold and holds one of the largest gold reserves in the world.

Gold loan market

India is also home to a flourishing gold jewelry market. Due to the emotional value associated with gold jewelry, people usually pledge their gold ornaments as collateral to secure short-term loans. A large part of the gold loan market in the country is still largely unorganized, with most of the unbanked population largely relying on pawn brokers and traditional moneylenders. However, with the widening scope of financial services in recent years, the share of organized players like non-banking financial companies (NBFCs) and banks has been on the rise. Certain gold loan NBFCs are now seeking priority sector status for eligible gold loans as taking loans against jewelry is a crucial form of funding for a wide section of micro, small, and medium-sized enterprises (MSMEs), farmers, and female borrowers.

Financialization of gold

 In recent years, the inclusion of the gold industry in the mainstream financial system has transformed it into a legitimate asset class, an important development as a large part of Indian household gold sits in lockers and remains unutilized. Sovereign gold bonds (SGBs) were introduced as a part of the scheme to reduce interest in physical gold. SGBs reduce the risk of storage, and investors are assured of the market value of gold at the time of maturity. Moreover, physical gold-backed exchange-traded funds (ETFs) have emerged as alternative ways to access the market and diversify investment portfolios.

Rising gold prices

In 2024, gold prices in India reached a record high of over 70,000 Indian rupees per 10 grams. This surge has been driven by several factors including geopolitical tensions, inflation, central bank purchases, and currency weakening. Geopolitical tensions have increased demand for gold, which has been seen as a safe asset during uncertain times. Because gold is considered a hedge against inflation, more investors have turned to it to preserve their wealth amid rising inflation concerns. Central bank-driven policy changes can further impact gold prices. The decline in the U.S. dollar index has made gold more attractive since it is priced in U.S. dollars. Simultaneously, the weakening of the Indian rupee against the dollar further escalated the prices in the country.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Jun 21, 2024

Key insights

Import value of gold jewelry
282m USD
Value of gold imported into India
3.77tr INR
Share of gold and other precious metal jewelry in export
2.62%
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Current statistics on this topic

Gold reserves of largest gold holding countries worldwide as of 2023 (in metric tons)

Investment Funds

Volume of gold reserves by country 2023

Rate of return of gold as an investment from 2002 to 2023 (based on the last London Gold Fixing of the year in U.S. dollars)

Financial Instruments & Investments

Rate of return of gold as an investment 2002-2023

Import value of gold jewelry across India from financial year 2016 to 2023, with an estimate for 2024 (in million U.S. dollars)

Luxury Goods

Import value of gold jewelry India FY 2016-2024

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