India's Gold Demand Falls 6% in April-June Quarter

Why in news

The World Gold Council reported a 6% year-over-year decline in India's gold demand for the April-June quarter, highlighting the impact of fiscal policy and price volatility.

Background

India's gold demand fell to 131.4 tonnes in the April-June quarter, a 6% YoY decrease. While jewellery demand dropped by 15%, investment demand rose by 9% to 50.3 tonnes. Total imports declined by 23% to 98.1 tonnes due to a 43% rise in gold prices.

Facts for Prelims

• FactIndia's gold demand in April-June quarter: 131.4 tonnes
• FactInvestment demand growth: 9% to 50.3 tonnes
• FactTotal gold imports decline: 23% to 98.1 tonnes
• BodyWorld Gold Council (WGC): International body reporting on gold demand and prices

For Mains

Q. Discuss the impact of high customs duties and price volatility on India's gold consumption and the potential risks of a burgeoning grey market.

Dimensions to cover in your answer

• fiscal policy impact
• grey market risks
• investment vs. consumption trends
• regulatory challenges

Keywords: fiscal policy · grey market · price volatility · demand-supply dynamics · customs duty

More Economy notes

• India to Train 750 More Pilots: Centre Launches 11 Flying Schools · 6 August 2026
• RBI Governor Malhotra Says Premature to Confirm UPI Transaction Charges · 5 August 2026
• Stock indices swing wildly as India launches new auction system · 5 August 2026
• RBI keeps repo rate unchanged at 5.25%, Sensex up 400 points · 5 August 2026
• Kudumbashree Organises Over 2,000 Onam Fairs to Boost Local Products, Aim for Higher Turnover · 5 August 2026
• Nabard rejected its ₹8,000-crore bond offering as investors demanded higher yields · 5 August 2026

All Economy current affairs →

Something wrong, or something missing?

Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.

Report a mistake →Ask for something →[email protected]