India has no plans to raise duties on gold and silver imports, a government source said on Monday, a day after Prime Minister Narendra Modi urged people to avoid buying gold for a year due to the impact of the Iran war.
India is the world’s second-largest consumer of gold and the largest consumer of silver.
Also Read: India’s gold investment demand tops jewellery for first time ever in March quarter
India’s investment demand for gold surpassed jewellery consumption for the first time on record in the March quarter, as investors turned to the precious metal amid subdued equity market returns, the World Gold Council (WGC) said on Wednesday.
Stronger investment demand in the world’s second-largest consumer of gold partly offset a decline in jewellery buying, hit by a rally in prices, helping keep overall demand stable, the WGC said.
“For the first time investment demand surpassed jewellery demand,” Sachin Jain, chief executive of the WGC’s Indian operations, told Reuters.
“Investment demand will become increasingly prominent in the coming quarters, with both financial and retail investors showing more interest in gold.”
Investment demand in the March quarter surged 52% from a year earlier to 82 metric tons, while jewellery demand fell 19.5% to 66 tons, the World Gold Council (WGC) said in a report published on Wednesday.
Total gold consumption in the country rose 10.2% to 151 metric tons during the quarter, according to the data.
For the first time, investment demand accounted for a larger share of total consumption than jewellery, rising to 54.3% in the quarter.