India imported  gold worth about Rs 17 lakh crore since 2020, remains among world’s largest buyers

Ziraat Times Team Report

New Delhi, May 12: India has imported gold worth nearly ₹17 lakh crore over the last five financial years since 2020, reaffirming its position as one of the world’s largest gold importing nations despite fluctuations caused by the pandemic, global price volatility and changing import duties.

According to the World Gold Council, India’s gold demand rose to around 802.8 tonnes in 2024, driven by investment demand and continued purchases during festivals and weddings.

India, the world’s second-largest gold consumer after China, continues to rank among the top gold importing countries globally. International trade estimates indicate that India accounted for more than nine per cent of global gold imports by value in 2023.

The country’s dependence on imported gold remains high due to limited domestic production and sustained demand from the jewellery industry, weddings, festivals and investment markets.

Gold imports had fallen sharply during 2020 due to the COVID-19 pandemic, lockdowns and disruptions in international trade. However, imports rebounded significantly from 2021 onwards as economic activity resumed and consumer demand strengthened.

Official and industry data showed that India imported more than 842 tonnes of gold during 2021-22, with the import bill crossing ₹3.44 lakh crore. In calendar year 2021 alone, India reportedly spent a record USD 55.7 billion on gold imports amid rising wedding demand and lower international prices.

Gold imports since 2020

*2024-25 figures are provisional.

The data indicates that India’s cumulative gold import bill since 2020 has approached ₹17 lakh crore, reflecting consistently strong domestic demand despite high prices.

India among top global gold importers

India remains one of the world’s largest importers of gold alongside countries such as China, Switzerland, the United Arab Emirates and the United Kingdom. Analysts say India’s large consumer base and cultural attachment to gold continue to sustain high import volumes year after year.

Trade data also shows that Switzerland remains the largest source of gold imports into India due to its dominant position in global gold refining. Other major suppliers include the United Arab Emirates, South Africa and several African countries.

Economists note that high gold imports significantly affect India’s trade deficit and current account balance because bullion imports require substantial foreign exchange outflows.

Government and industry experts, however, point out that gold remains deeply embedded in India’s social and financial systems, serving both as an investment asset and an important part of cultural traditions.

Analysts believe future import trends will depend on international gold prices, domestic demand, import duty structures and global economic conditions, particularly uncertainty in energy markets and geopolitical tensions.