The World Gold Council expects India’s gold consumption to cool in 2025 after reaching a nine-year high of 802.8 metric tons last year.
The slowdown is largely a response to record gold prices: rates climbed to 84,399 rupees (about $968.62) per 10 grams after a cumulative rise of roughly 31%—a 21% increase in 2024 followed by an additional 10% so far in 2025.
Higher prices are weighing on jewelry purchases, which typically make up about 70% of India’s total gold demand. With household budgets unable to stretch as prices climb, demand for gold jewelry is expected to fall.
Conversely, investment demand strengthened in 2024 and is forecast to remain robust. Investment in gold rose 29% to an 11-year high of 239.4 metric tons last year. This growth has been driven by a range of channels, including exchange-traded funds (ETFs), digital gold platforms, and purchases of physical bars and coins.
The outlook points to a shift in how Indians engage with gold: less spending on ornamental jewelry and more allocation toward investment vehicles that offer liquidity and diversified access. Even as retail jewelry sales slow, investors appear to be redirecting funds into assets perceived as safe havens amid higher prices and market volatility.
For the wider market, the combination of elevated prices and changing demand patterns could influence imports, local manufacturing, and retail strategies. Jewelers may need to adapt by offering smaller, more affordable pieces, expanding financing options, or emphasizing resale and customization services to attract budget-conscious buyers.
At the same time, continued growth in investment channels such as ETFs and digital gold could deepen India’s market for non-ornamental gold products, providing alternative ways for savers to own the metal without the premiums and making-and-hallmarking costs associated with jewelry.
Overall, the World Gold Council’s projection suggests a market transitioning from predominantly jewelry-driven consumption toward a stronger role for investment demand, shaped by high prices and evolving consumer preferences.