The World Gold Council has launched a titled ‘Bullion Trade in India’ as part of a series of in-depth analysis on the Indian gold market. The report states that imports made up 86% of India’s gold supply between 2016-2020, and inbound shipments continue to grow despite high import duty.
The report highlights how, with very little mining and modest levels of recycling, India is heavily reliant on bullion imports to meet its domestic demand. Indian official imports have continued to grow despite high import duty, with official imports averaging 760t since the first duty hike in 2012.
In 2020, India imported 377t of gold bars and doré from over 30 countries – 55% of the imports came from just two countries – Switzerland (44%) and the UAE (11%). One important change that has taken place in India’s gold market is the growth in gold dore imports. The increase reflects the government’s accommodative stance towards gold refining, the report said. WGC regional CEO, India, Somasundaram P R said, “Bullion industry has developed over the last three decades in India with a significant addition to organised refining capacity and an LBMA-accredited refinery.”
