India’s gold market in 2025 told a story of contrast. While overall demand softened in volume terms, soaring gold prices pushed the total value of consumption sharply higher, underscoring a fundamental shift in how Indian buyers are engaging with the metal.
According to World Gold Council data, India’s total gold demand for calendar year 2025 declined 11% to 710.9 tonnes. Yet, in value terms, demand surged 30% to ₹7.51 lakh crore, driven almost entirely by record-breaking gold prices.
Jewellery demand bore the brunt of the price rally. Volumes fell steeply by 24% year-on-year to 430.5 tonnes, reflecting affordability pressures even during key buying periods. Despite lower volumes, the value of jewellery purchases rose 12% to ₹4.54 lakh crore, highlighting how higher prices reshaped spending patterns rather than eliminating demand altogether.
Investment demand, however, emerged as the clear outperformer. Volumes increased 17% to 280.4 tonnes, while the value of investment demand jumped a striking 73% to ₹2.97 lakh crore. This shift points to a growing preference for gold as a financial asset rather than purely a consumption-driven purchase.
The divergence became more pronounced in the final quarter of the year. In Q4 2025, total gold demand declined 9% year-on-year to 241.3 tonnes. Yet, the value of demand climbed nearly 50% to ₹3.03 lakh crore. Jewellery volumes dropped 23% to 145.3 tonnes, even as their value rose 26%, reflecting cautious buying amid elevated prices during the wedding season.
Investment demand strengthened further in the quarter, rising 26% by volume to 96 tonnes. In value terms, investment spending more than doubled to ₹1.21 lakh crore, signalling a decisive tilt towards gold as a portfolio hedge amid global uncertainty.
On the supply side, gold imports moderated, falling 5% year-on-year in Q4 to 215.1 tonnes. Recycling activity declined even more sharply, down 27% to 21.7 tonnes, suggesting that consumers chose to hold on to their gold despite favourable prices—reinforcing its role as a long-term store of value.
Looking ahead, the World Gold Council expects India’s gold demand in 2026 to range between 600 and 700 tonnes. Investment-led demand is likely to remain resilient, supported by continued interest in ETFs, digital gold, and gold’s positioning as a defensive asset in volatile markets.