India's gold market shifts: jewellery demand falls 26% as digital gold txns surge 173%
India's $39.7B gold market, projected to hit $68B by 2032, is rebalancing. H1 FY26 jewellery consumption dropped 26% while bars and coins rose 14% and digital gold transactions jumped 173% to Rs 2,079 cr. South India still drives 40% of demand, but the buyer is moving from ornament to investment.
What happened
India Gold Retail · India's gold market, valued at $39.7B in 2025, is projected to hit $68B by 2032. Jewellery demand fell 26% in H1 FY26 while bars/coins rose
Key facts
- 24,000-25,000 tonnes household gold
- $39.73B market 2025
- $68.15B by 2032
- 700-800 tonnes annual imports
- Q1 demand 151 tonnes (+10% YoY)
- digital gold txns +173% to Rs 2,079.31 cr
- 12 tonnes digital gold Jan-Nov 2025
- jewellery consumption -26% H1 FY26
- bars/coins +14%
- South India 40% of demand
- 30% global jewellery demand
- 85-90% imports
Why this matters
Pursue bolt-on acquisitions or partnerships with digital gold platforms and bullion distributors to hedge declining jewellery throughput, with South India's 40% demand concentration making regional fintech-jeweller tie-ups the highest-leverage M&A vector.