India buys the gold. Why doesn’t it set the price?
- Somasundaram PR
- ET Prime May 04, 2026, 12:21 IST IST
India’s relationship with gold is underpinned by trust, emotion, tradition and economic behaviour rolled into one. This trust ritualistically extends to the practices around yellow metal.
Consider the scale. India imports 700–800 tonnes of gold every year, worth about USD70 billion–USD95 billion. Yet, the country has almost-nil direct influence on how the metal is priced and benchmarks sit elsewhere on terms set outside. Size of consumption and statements of ambition belie our peripheral status in market structure.
Consider the scale. India imports 700–800 tonnes of gold every year, worth about USD70 billion–USD95 billion. Yet, the country has almost-nil direct influence on how the metal is priced and benchmarks sit elsewhere on terms set outside. Size of consumption and statements of ambition belie our peripheral status in market structure.
