The World Gold Council (WGC) on Friday said that signs of demand revival are emerging in India as the gold jewellery market gears up for the upcoming festive and wedding season that starts from early August and continues till end December.
Anecdotal reports from industry stakeholders suggest a positive outlook. This optimism was evident at the recent India International Jewellery Show (IIJS), the country’s largest jewellery trade fair. As per anecdotal reports from the event, many manufacturers reported stronger-than-expected buying interest and a noticeable pickup in orders from both large chain stores and independent retailers.
Retailers who had been cautious about their inventories in recent months due to lacklustre demand reported active restocking in anticipation of improved festive sales. And gold price stability also reportedly supported buyer sentiment. Furthermore, to appeal to price-sensitive customers and to drive volumes, manufacturers are focusing on lighter- weight jewellery. Meanwhile, market reports suggest that investment demand for physical gold like bars and coins, remains healthy, WGC said.
Flows into Indian gold ETFs remained positive in July, marking the third consecutive month of net inflows. Global policy-related uncertainties and geopolitical tensions have been major drivers of this trend. But, the pace of net inflows slowed, declining to INR12.6bn (US$146mn) in July, down 41% from the previous month. This was broadly in line with our initial estimate7 and nearly 34% higher than the 2024 monthly average of INR 9.4bn. The positive momentum has carried into August, with partial data for the first two weeks indicating higher inflows into Indian gold ETFs.
At the end of July Indian gold ETFs’ cumulative assets under management (AUM) stood at INR676bn (US$7.85bn), a 96% y/y increase. Total gold holdings rose to 68t, with 1.2t added during the month. Investor interest in gold ETFs continues to strengthen as indicated by the steady growth in new accounts (folios); 215k new folios were added in July, bringing the total to 7.86mn, a 42% y/y increase.
Gold imports saw a significant rebound, following three months of declines. At US$4bn, imports in July notably surpassed the monthly average imports for the first six months of 2025 (US$3bn); up 14% y/y and more than double the value of those during June. Our estimates indicate that the volume of gold imported in July ranged from 42t to 48t. The higher import levels suggest that manufacturers are likely preparing for festive season demand, beginning in August.
Anecdotal reports from industry stakeholders suggest a positive outlook. This optimism was evident at the recent India International Jewellery Show (IIJS), the country’s largest jewellery trade fair. As per anecdotal reports from the event, many manufacturers reported stronger-than-expected buying interest and a noticeable pickup in orders from both large chain stores and independent retailers.
Retailers who had been cautious about their inventories in recent months due to lacklustre demand reported active restocking in anticipation of improved festive sales. And gold price stability also reportedly supported buyer sentiment. Furthermore, to appeal to price-sensitive customers and to drive volumes, manufacturers are focusing on lighter- weight jewellery. Meanwhile, market reports suggest that investment demand for physical gold like bars and coins, remains healthy, WGC said.
Flows into Indian gold ETFs remained positive in July, marking the third consecutive month of net inflows. Global policy-related uncertainties and geopolitical tensions have been major drivers of this trend. But, the pace of net inflows slowed, declining to INR12.6bn (US$146mn) in July, down 41% from the previous month. This was broadly in line with our initial estimate7 and nearly 34% higher than the 2024 monthly average of INR 9.4bn. The positive momentum has carried into August, with partial data for the first two weeks indicating higher inflows into Indian gold ETFs.
At the end of July Indian gold ETFs’ cumulative assets under management (AUM) stood at INR676bn (US$7.85bn), a 96% y/y increase. Total gold holdings rose to 68t, with 1.2t added during the month. Investor interest in gold ETFs continues to strengthen as indicated by the steady growth in new accounts (folios); 215k new folios were added in July, bringing the total to 7.86mn, a 42% y/y increase.
Gold imports saw a significant rebound, following three months of declines. At US$4bn, imports in July notably surpassed the monthly average imports for the first six months of 2025 (US$3bn); up 14% y/y and more than double the value of those during June. Our estimates indicate that the volume of gold imported in July ranged from 42t to 48t. The higher import levels suggest that manufacturers are likely preparing for festive season demand, beginning in August.
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