The World Gold Council's latest Gold Demand Trends report confirms that India retained its position as the world's second-largest gold consumer, with total demand of approximately 802 tonnes during the year. China led global consumption at around 985 tonnes. Together, the two countries accounted for nearly 55% of global gold jewellery demand.
Breakdown of Indian Demand
Jewellery accounted for the largest share of Indian demand at 572 tonnes, driven primarily by the wedding season, Akshaya Tritiya, and Diwali purchases. Investment demand — comprising gold bars, coins, and ETFs — reached 230 tonnes, reflecting growing awareness of gold as a financial asset among urban Indians. Technology and industrial uses accounted for a small fraction of total demand.
Rural vs Urban Demand
Rural India continues to be a significant driver of gold demand, accounting for approximately 60% of jewellery purchases. A good monsoon season typically boosts rural gold buying, as agricultural income increases disposable savings among farming communities. The WGC notes that a 10% improvement in rural income correlates with a 4–5% increase in gold demand from rural markets.
Outlook for 2026
The WGC projects Indian gold demand to remain in the 800–900 tonne range for 2026, supported by a strong wedding pipeline, healthy monsoon forecasts, and continued growth in urban investment demand. Potential headwinds include elevated price levels that may dampen discretionary jewellery purchases and any significant appreciation in the US dollar against the rupee.