India became the world’s second-largest gold consumer with 802.8 tonnes of demand in 2024, accounting for 26% of global consumption, while the Reserve Bank of India’s gold reserves increased to 880 tonnes, according to an SBI Research report released Wednesday.

Domestic supply of gold is only a fraction of the total supply of gold in India, with imports contributing around 86 per cent of the total supply in 2024 (the World Gold Council estimate). Gold imports increased around 31 per cent in FY24 and 27 per cent in FY25.

However, higher prices have led to lower demand of gold in 2025. In Q3 2025, consumer demand of gold declined by around 16 per cent year-on-year, driven by reduced jewellery demand, said the report by Dr Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI.

Higher price

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