India's Gold Import and Refining Industry: An Overview

India is the world's second-largest gold consumer after China. The country's gold import and refining ecosystem is vast, strategically important, and undergoing significant transformation.

Import Scale and Sources

India consumed 802.8 tonnes of gold in 2024 — crossing 800 tonnes for the first time in nine years — valued at Rs. 5.15 lakh crore ($51.8 billion). In 2025, volume declined 11% to 710.9 tonnes due to record-high prices, but the value rose 30% to Rs. 7.51 lakh crore.

The top three source countries by quantity (April 2022 to March 2025):

• Switzerland — 28.7%
• United Arab Emirates — 19.0%
• South Africa — 8.7%

Import Duty Landscape

In 2024, India reduced customs duty on gold from 15% to 6% — a 9% cut, the steepest on record. This was aimed at curbing smuggling and boosting the formal gold economy. The reduction significantly affected domestic pricing and made formal imports more competitive.

Domestic Refining

Over 40 licensed gold refineries operate in India, and the refining industry is valued at approximately Rs. 440 billion. Refining accounts for around 11% of India's average annual gold supply, handling both imported gold and recycled material from the jewellery trade.

However, the industry faces challenges. Refining capacity is underutilised, and the market remains fragmented between organised and unorganised players.

The LBMA Accreditation Challenge

Achieving London Bullion Market Association (LBMA) Good Delivery accreditation is critical for Indian refiners seeking global market access. However, a challenging cycle exists: underutilisation prevents the production volumes needed for LBMA accreditation, which in turn limits global market access that would drive volume.

The government has been pushing to build LBMA-accredited refining capacity as part of India's ambition to become a global gold trading hub.

The Hallmarking Link

At the retail end of the supply chain, hallmarking centres serve as the final quality checkpoint. With over 1,060 BIS-authorized Assaying & Hallmarking Centres and nearly 1,94,000 registered jewellers, the hallmarking infrastructure ensures that gold reaching consumers has been independently tested and certified.

Outlook

The World Gold Council projects Indian gold demand of 600–700 tonnes for 2026. Key factors to watch include global gold prices, INR/USD exchange rates, import duty policy, and the pace of hallmarking infrastructure expansion. India's gold ecosystem — from import to refining to hallmarking to retail — continues to evolve toward greater transparency, quality assurance, and regulatory rigour.