The World Gold Council (WGC) said that gold consumption in India in 2025 is expected to decrease to a 5-year low, as record gold prices are reducing jewelry purchasing power, although investment demand has increased slightly.
According to Sachin Jain - WGC CEO in India, demand for gold in the world's second largest gold consumer country may fluctuate between 600 to 700 tons this year - the lowest level since 2020, down from 802.8 tons last year.
He said that if gold prices are stable, demand could reach 700 tons. However, if prices increase by 10%-15% due to geopolitical factors, consumption may decrease to the bottom of the forecast range.
So far, domestic gold prices in India have risen 28% in 2025, after rising 21% in 2024. In June, gold prices hit a record high of 101,078 rupees/10 grams.
In the second quarter (from April to June), demand for gold in India decreased by 10% compared to the same period last year, to only 134.9 tons. Of which, demand for gold jewelry decreased by 17%, while demand for investment increased by 7%, according to the WGC report.
Mr. Jain predicts that gold demand in the third quarter of 2025 will be lower than the 248.3 tons of the same period last year - the time the Indian government cut import taxes, stimulating demand for gold. However, gold is still superior to many other assets and continues to attract investors, including physical gold holders and gold exchange-traded funds (Gold ETFs).
Gold ETFs in India are at an important development moment and as the country digitalises more and more, they are becoming more popular and popular, he said.
According to data from the Association of mutual Funds in India, capital flows into gold ETFs in June increased 10 times compared to the previous month, to 20.81 billion rupees (equivalent to 237.5 million USD) - the highest level in 5 months.
