Undeterred by all-time high international prices, Indian demand for gold in the international markets rose 172% on year in October to 165 tonnes from 60 tonnes in the same month of the previous year, an analysis by Gems and Jewellery Export Promotion Council (GJEPC) said.
The demand was fulfilled through purchases of the yellow metal worth $ 14.72 billion overseas, which was 200% more than last year’s $ 4.92 billion. The difference between volume and value growth can be attributed to more than 25% increase in prices of yellow metal in April-October as compared to last year.
The surge in silver exports was even higher – 528% on year $ 2.71 billion. October’s gold import surge was a continuation of the trend seen in September, when imports rose 77.8% on year to 110 tonnes.
The surge in gold and silver is notable because India’s gems and jewellery exports fell 29.5% in October, indicating that most of the gold and silver inflows are feeding domestic demand rather than export production, founder of Global Trade Research Initiative Ajay Srivastava said. The domestic demand drivers were retailers stocking for wedding and festive season. For April-October the exports of gems and jewellery sector – one of the worst hit by US tariffs – were down 4.08% to $ 16.4 billion.
“As anticipated, October was comparatively softer. This is a regular pattern for the sector, with global retailers completing their holiday-season stocking during August–September, and domestic manufacturing activities slowing during the Diwali break. At the same time, demand in a few key markets remained uneven due to tariff-related uncertainty in the U.S. and continued softness in China,” chairman of GJEPC Kirit Bhansali said.
However, for the first seven months of this fiscal the difference in quantity of gold imports is not substantial. In April-October this year gold imports stood at 472.53 tonnes, up from 461.85 tonnes in the same period of last year. The import bill for gold this year so far has been $ 41.23 billion, up from $ 33.95 billion.
“Looking ahead, we see strong foundations for a steady rebound. The Government’s continued support — through the Export Promotion Mission, the Credit Guarantee Scheme for Exporters, and the RBI’s trade-relief measures, directly addresses long-standing pain points such as high-cost finance, tight liquidity, extended export cycles, and limited access for smaller exporters,” Bhansali said.
The council is also actively expanding India’s presence in high-potential markets, including the Middle East, Latin America, Cambodia and Vietnam. “Our trade delegations, buyer–seller meets, and promotional initiatives are opening new avenues for exporters and strengthening long-term partnerships,” Bhansali added.