in a single day indians spend 2200 crore on gold
Indians Spend ₹2,200 Crore On Gold In A Single Day, And Import The Most Gold From Here . India is among the world’s largest gold consumers. Demand for gold is so high that people purchase approximately ₹2,200 crore worth of gold every day. According to a report by the World Gold Council (WGC), India purchases an average of 2.2 tonnes, or approximately 2,200 kilograms, of gold daily. In India, gold is not only an investment tool but is also associated with tradition and social prestige. Buying gold during weddings, festivals, and special occasions is considered auspicious. This is why the country consumes approximately 800 to 900 tonnes of gold annually.
Approximately 75% of all gold purchased in the country is used as jewelry. Furthermore, people also invest in gold coins and gold bars. The southern Indian states, especially Kerala and Tamil Nadu, are considered to be the leading gold buyers. Gold demand here has traditionally been very high.
Most of the gold is imported from here.
India’s domestic gold production is very low. Consequently, the country has to import approximately 99 percent of its gold needs from abroad. India imports the most gold from Switzerland, accounting for approximately 40 percent of total imports. The United Arab Emirates (UAE) is next, accounting for approximately 16 percent of India’s gold imports. South Africa and Peru are also major gold suppliers to India.
Recently, given the rising import bill and pressure on foreign exchange reserves, Prime Minister Narendra Modi has appealed to people to reduce non-essential gold purchases. The government believes that excessive gold imports increase the country’s trade deficit. Meanwhile, the government has increased the import duty on gold and silver from 6 percent to 15 percent. Following this decision, gold prices in the domestic market saw a rise. Experts say that while the higher duty may reduce imports somewhat, strong demand for gold in India will not completely stop its purchase.
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