India’s gold spending rose 50% in Q2 even as demand fell 6%
India’s gold demand declined to 131.4 tonnes in Q2 2026, but higher prices lifted spending to Rs 1.98 lakh crore. Jewellery volumes fell 15%, while bar-and-coin demand rose 9% as consumers shifted towards lighter, lower-carat and exchanged products.
What happened
World Gold Council · India’s gold demand fell 6% in Q2 2026, but spending rose 50% to Rs 1.98 lakh crore as prices climbed. Jewellery buyers shifted to lighter,
Key facts
- India total gold demand: 131.4 tonnes, down nearly 6% year-on-year in Q2 2026
- Total gold-demand value: Rs 1.98 lakh crore, up 50% year-on-year from Rs 1.33 lakh crore
- Consumer spending increase: nearly Rs 65,000 crore despite buying about 8.3 tonnes less
- Jewellery demand: 75.1 tonnes, down 15% year-on-year
- Jewellery purchase value: Rs 1,13,210 crore, up 34%
- Bar and coin demand: 50.3 tonnes, up 9% year-on-year
- Indian gold ETF net inflows: 4.2 tonnes
- Gold import duty increased from 6% to 15%
- Domestic gold price fell below Rs 1.5 lakh per 10 grams in June
Why this matters
The shift toward investment bars and coins alongside lower-ticket jewellery creates acquisition and partnership opportunities in value-format, omnichannel and gold-recycling platforms.
What to watch
- Gold-price direction and volatility ahead of the festive and wedding buying period.
- Jewellery gram-volume trends versus bars-and-coins demand in monthly industry data.
- Share of exchange-led sales, lower-carat sales and lightweight products at organised chains.
- Making-charge discounting and promotional intensity across major jewellers.
- Consumer confidence, rural income conditions and disposable-income pressure from inflation.
- Import-duty, hallmarking or tax changes affecting gold affordability and formal-sector share.
- Prioritise lightweight, 14K/18K and modular designs with lower entry-price points while protecting perceived value.
- Use exchange and old-gold recycling campaigns to reduce consumer sticker shock and secure lower-risk metal sourcing.
- Increase bars-and-coins availability, but bundle investment purchases with future jewellery redemption or loyalty incentives.
- Tighten inventory turns by reducing exposure to slow-moving heavy bridal designs and using hedging discipline.
- Track category-level economics separately: revenue growth, gram volumes, average selling price, making charges and exchange share.