# 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.
- Title: India's Gold Bar Market Lags Behind China · The Economic Times
- Summary: 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…
- Keywords: india, gold bars, china, world gold council, investment demand, gold prices, import duty, India's, Gold, Bar, Market, Lags
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/india-sets-the-bar-next-to-china-in-gold-investments-despite-a-40-plunge/articleshow/135487929.cms
- Author: ET Online
- Published: 2026-11-03T08:05:00+00:00
- Read time: 1 min
- Topics: india, gold bars, china, world gold council, investment demand, gold prices, import duty
## 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.
## Key takeaway

India's gold bar market fell 40% in 2026 but stayed second globally after China, with 21% of global demand.