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India’s gold imports are expected to fall this year as record prices crimp demand for jewellery in the world’s second-largest bullion market after China, according to the World Gold Council (WGC).
Bullion imports dropped 11 percent to 710.9 tons in 2025 and may decline to between 600 and 700 tons in 2026, the WGC said in a report released on Thursday.
Gold’s been on a tear this year, surging by more than a quarter and extending a record-breaking rally that’s seen prices top $5,500 an ounce. The rally is forcing Indian buyers to scale back purchases or settle for lighter pieces in a market where jewellery accounts for the lion’s share of demand.
Global jewellery consumption volumes slumped to a five-year low of 1,542 tons in 2025, with demand falling across all key markets, the WGC said, while Indian jewellery demand dropped 24 percent to 430.5 tons. Consumers typically have fixed budgets for such spending, and this acts as a brake on the quantity of gold they can buy, council said.
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Lower-purity 14-karat jewellery has found interest from younger, urban buyers in the north of India seeking more affordable options. However, there’s reluctance to embrace lighter alloys across the country as it “dilutes a key reason for holding it: long-term capital preservation,” the WGC said.
Some Indian buyers have shifted to bars and coins instead, with investment purchases climbing 17 percent to 280.4 tons in 2025 from 230 tons the year before, cushioning part of the decline in jewellery sales, the council said.
By Preeti Soni
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