India's Gold Import Slump Amid Record High Prices
India's gold imports fell 40% in June to their lowest in over two years due to record high prices. In 2025's first half, imports dropped 30%, continuing the trend of reduced demand as domestic prices soared. Conversely, silver imports surged, attracting investors seeking better returns.
India has witnessed a dramatic decline in gold imports, dropping by 40% in June to the lowest level in more than two years, according to data provided by the government and industry insiders. This downturn is attributed to a sharp increase in gold prices reaching record highs, which has significantly dampened consumer demand.
In June, India imported only 21 tons of gold, a stark contrast to the average 52.4 tons seen over the last decade. The value of these imports also dropped to $1.84 billion from $2.48 billion year-on-year. This trend reflects India's transition towards other investment avenues amid soaring gold prices.
The trend of reduced gold consumption persists as India's imports in the first half of 2025 fell by 30% to 204.1 tons, marking the lowest import level since 2020's COVID-19-induced lockdown period. Despite this, silver imports have nearly doubled, attracting interest due to more promising returns compared to gold.
(With inputs from agencies.)
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