India Ranks Second Globally In Gold Consumption, RBI Reserves Climb To 880 Tonnes
SBI Research reveals India’s gold demand at 802.8 tonnes in 2024, accounting for 26% of global consumption; rising domestic discoveries may reduce import pressure.
New Delhi, Nov 5 — India has cemented its position as the world’s second largest consumer of gold, accounting for 26% of global demand with total consumption touching 802.8 tonnes in 2024, according to the latest SBI Research report released on Wednesday. China topped the list with 815.4 tonnes.
The report by Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor at SBI, highlighted that India’s domestic gold supply remains limited, with imports contributing nearly 86% of the total. Gold imports surged by 31% in FY24 and another 27% in FY25, as per World Gold Council data.
However, the sharp rise in gold prices in 2025 has begun to weigh on demand. During Q3 2025, consumer demand declined 16% year-on year, mainly due to reduced jewellery purchases. This slowdown also pushed gold imports down by 9% to $26.5 billion in April–September FY26, compared to $29 billion during the same period last year.
In a significant trend, RBI’s gold reserves increased to 880 tonnes in 2025, marking part of its strategic diversification of foreign exchange reserves.
The report noted that gold has offered returns comparable to the equity market (Sensex) over 5, 10, and 15 years and even outperformed equities over the past one and three years.
Adding to optimism, new gold discoveries in India are expected to ease import dependency. Deposits have been identified in Odisha’s Deogarh, Keonjhar, and Mayurbhanj districts (with an estimated 1,685 kg of gold ore), Jabalpur in Madhya Pradesh, and Kurnool in Andhra Pradesh, where the country’s first large private gold mine is projected to yield 750 kg annually.
Since the launch of Sovereign Gold Bonds (SGBs) in November 2015, the government has issued 67 tranches, with 125.3 tonnes outstanding as of October 2025. However, the report points out a notional loss of ₹93,284 crore to the government due to rising gold prices between issuance and redemption.
SBI Research concludes that while gold continues to play a pivotal role in India’s economy, strategic reserve growth and domestic mining expansion could help reduce import dependency and strengthen the current account balance in the coming years.
