Daijiworld Media Network - Mumbai
Mumbai, Apr 29: A recent report unveiled today by Zerodha Fund House indicates a significant surge in India's gold demand, exceeding 800 tonnes in 2024. This robust growth was fueled by both a rise in the consumption of gold jewellery and an increased appetite for investments in gold exchange-traded funds (ETFs).
The report highlighted India's position as the world's leading consumer of gold jewellery in 2024, with total consumption reaching an impressive 563 tonnes. The estimated value of this consumption stood at approximately Rs 3.6 lakh crore. Gold's enduring significance in Indian culture, particularly during weddings and other auspicious events, continues to drive its widespread use.
Beyond adornment, Indians are also demonstrating a strong inclination towards investing in gold in the form of bars and coins. In 2024, the nation purchased 239 tonnes of gold in these formats, valued at roughly Rs 1.5 lakh crore. This represents a substantial 60 per cent increase compared to 2023, positioning India as the second-largest investor in gold bars and coins globally.
The report further underscored the growing interest among Indian investors in gold ETFs. Over the past five years, gold ETF holdings in India have nearly tripled, expanding from 21 tonnes to 63 tonnes.
Corroborating this trend, a recent report from the National Stock Exchange (NSE) also pointed to strong inflows into gold-backed ETFs, both domestically and internationally. In the first quarter of 2025, net inflows into gold ETFs reached a significant $21 billion, equivalent to 226 tonnes – the highest level since the second quarter of 2020.
According to the NSE, gold outperformed all other asset classes in FY25, delivering an impressive 41 per cent return in dollar terms. "India reflected this shift, with the RBI ranking as the third-largest official buyer over the past three and five years, and gold now making up over 11 per cent of its forex reserves," the stock exchange noted in its report on Monday.
The surge in gold prices is largely attributed to prevailing global economic uncertainties, prompting many investors to seek the stability of gold as a safe-haven asset.