Why the October surge in gold imports should be watched
- In the past decade, India’s gold imports in volume terms have moved to a lower trajectory, aiding fiscal management. The latest surge, if it continues, could undo some of these gains.
India has historically been a gold-loving nation, though there’s been some tempering of those tendencies. In 2010, India accounted for 30% of the world’s gold demand, according to the industry body World Gold Council. Since then, India’s gold demand has dropped even in absolute terms, and its global share fell to 23% in 2022. This has helped India on key fiscal management metrics. But in October, gold imports spurted at a rate that, if it continues, could undo some of the previous gains from the drop in gold demand.