India beats China to become largest gold jewellery consumer

India has beaten China with a jewellery consumption of 563.4 tonnes in 2024, overtaking Beijing’s 511.4 tonnes and becoming the world’s largest gold consumer in this segment.

Higher jewellery consumption was among the factors that pushed up India’s total gold demand by 5 per cent year-on-year to 802.8 tonnes in 2024, industry data showed. This stood at 761 tonnes in 2023.

According to the World Gold Council (WGC), the consumption of the yellow metal in 2025 in India was likely to hover between 700 and 800 tonnes.

Rising gold demand

The gold demand value went up by 31 per cent at Rs 5,15,390 crore in 2024, up from Rs 3,92,000 crores the previous year.

"Our outlook for 2025, gold demand is between 700-800 tonnes. It is expected that gold jewellery demand will recover due to wedding-related purchases, provided there is some price stability," Sachin Jain, the WGC Regional CEO, India, told PTI.

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This year, gold prices surged Rs 6,410 or 8.07 per cent to Rs 85,800 per 10 grams from Rs 79,390 per 10 grams on January 1.

Gold duty cut

Meanwhile, the jewellery demand declined by 2 per cent to 563.4 tonnes in 2024, compared to 575.8 tonnes in 2023, Jain said. This happened even as gold prices reached multiple record highs.

"This indicates the resilience of gold jewellery demand in India and highlights the effect of the duty cut in July as well as India's stronger economic growth compared to many other markets," he said.

He said many purchased gold jewellery in the late third quarter when the duty cut mitigated much of the recent price increase.

Gold investment rises

Gold prices resumed their upward trend after the July duty cut. A subsequent correction in November attracted investors seeking lower-priced purchases, Jain added.

Nonetheless, the value of gold demand during 2024 increased by 22 per cent, illustrating the ongoing demand for gold and supported by the rise in gold prices throughout the year.

"Total gold investment went up by 29 per cent in 2024, at 239.4 tonnes -- the highest since 2013, compared to 185.2 tonnes in 2023, reinforcing gold's status as a safe-haven asset," Jain stated.

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Gold recycling last year saw a decline of 2 per cent at 114.3 tonnes from 117.1 tonnes in 2023.

Also, gold imports in India in 2024 slid by 4 per cent to 712.1 tonnes as compared to 744 tonnes in 2023.

Demand to continue

Further, the Reserve Bank of India was a significant purchaser in 2024, acquiring 73 tonnes, much more than the 16 tonnes it bought in 2023.

It is anticipated that the trend of robust gold investment demand will continue, with retail investors displaying increasing interest in gold ETFs, digital gold as well as coins and bars.