May 6, 2013
by Prof Vaidyanathan · in Gold, niticentral.com

India is one of the largest buyers of gold in the world. More than 90 per cent of this is for jeweler purposes. Table 1 gives the purchase of gold for jewellery by different countries. Indian demand is around 25 per cent of global consumption. Recently, the attraction of smuggling has come down due to liberalised import policy. Incidentally, domestic production of gold is very negligible, running into a few tonnes. The purchases made in Saudi Arabia and Gulf states is also mostly by people of Indian origin and to that extent the demand by ‘Indians’ is much larger. What is bought in Gulf states this year by the NRIs (non-resident Indians) will reach here may be in a year or so.