No effect of high gold prices; third-quarter demand reached a 9-year high, consumption increased by 18%
Gold Demand: Due to reduction in import duty, the demand for gold has reached a 9-year high in the third quarter. According to the report of the World Gold Council (WGC), high prices have not had an impact, which is why gold consumption has increased by 18 per cent.
In the third quarter of this year (July-September), the country's demand for gold increased by 18% year-over-year to a nine-year high of 248.3 tonnes, despite high prices, because of the reduction in import duties. There were 210.2 tonnes of gold demanded overall in the same period last year. At the same time, the total demand for gold went to Rs 1,65,380 crore, a 53- percent year-over-year increase. In 2023, the third quarter saw the sale of gold valued at Rs 1,07,700 crore.
In July-September, the total demand for gold jewellery increased by 10 percent to 171.6 tonnes, according to a report issued by the World Gold Council (WGC) on Wednesday. The jewellery that was bought was valued at Rs 1,14,300 crore. This is 43 and above Rs 79,830 crore for July through September of 2023. According to WGC's Regional CEO (India), Sachin Jain, the July decrease in the import duty on gold increased demand for jewellery. For gold, this was the best third quarter since 2015.
Strong domestic demand pushed the country's gold imports up 21.78% to $ 27 billion in the first half of the current financial year. A total of $ 22.25 billion worth of gold was imported during the April-September period of 2023-24. India's gold imports jump 21.78% to $27 bn in first half of this fiscal According to government data, $ 2.3 billion worth of silver was imported in the first six months of the current financial year. This is higher by 376.41% compared to $480.6 million during the same period last year. In 2023–2024, total gold imports increased by 30% to $45.54 billion.
With over 40&, Switzerland is the largest supplier of gold to India. South Africa ranks in third with about 10&, followed closely by the United Arab Emirates at over 16&.
The country's trade deficit grew from $119.24 billion in the first half to $137.44 billion as a result of the increasing imports of gold. In April-June 2024, the current account deficit (CAD) also slightly increased to $9.7 billion, or 1.1% of GDP.
