From The Economic Times · ET Online · · 1m 10s
India's Gold Bar Market Lags Behind China
India's gold bar investments dropped 40% year-on-year despite remaining the world's second-largest market after China.
In brief
India's gold bar investments dropped 40% year-on-year despite remaining the world's second-largest market after China. India's gold bar market fell 40% in 2026 but stayed second globally after China, with 21% of global demand. Originally reported by The Economic Times.
Global Gold Demand
India remained the world's second largest bar and coin market after China accounting for around 21% of global Q3 demand.
Investment Demand Drop
Bars and coins remained India's largest gold investment channel in the September quarter, with demand rising 9% sequentially to 55 tonnes, although it fell 40% year-on-year.
Year-on-Year Decline
The decline partly reflected a high base in the year-ago period and a moderation in investor buying as price momentum eased.
Import Duty Impact
The nine-percentage-point increase in gold import duty in May also weighed on demand.
Investment Resilience
Investment accounted for around 42% of India's net gold demand in the September quarter, down from 69% in the March quarter.
Digital Gold Growth
Gross digital gold purchases stood at an estimated 4.9 tonnes in the September quarter, broadly unchanged from the previous quarter but higher than 3.4 tonnes a year earlier.
The big picture
India's gold bar market fell 40% in 2026 but stayed second globally after China, with 21% of global demand.
