What is behind India’s renewed love for gold?

India imported 1,050 tn gold worth ($55.7 bn) in 2021, more than double of 2020. Last year’s gold import surpassed the high recorded in 2011. Find out what is behind India’s renewed rush for gold?

Indians will build on their love for gold this year, as pent-up demand heralds a period of robust sales. This was the main finding in the World Gold Council’s recent report — The Drivers of Indian Gold Demand.
The report stated that imports remain strong and retail demand was expected to pick up, when pandemic restrictions were lifted across the country. Data from the previous year illustrates this point.

India spent a record $55.7 bn on gold imports in 2021, buying more than double the previous year’s tonnage. The 2021 gold import bill also surpassed the previous high of $53.9 bn in 2011. Gold’s price drop favoured retail buyers and there was strong pent-up demand for weddings in October last year.

“Rising incomes are one of the biggest single drivers of long-term gold demand. This suggests that as India’s economy grows, demand for gold should increase,” the report stated.

However, a fall in employment numbers, particularly salaried employment, and a poor consumer sentiment index could seriously affect the sale of…read more