India's gold imports plummeted by 81% in September, a sharp decline ahead of the country's festive season. The drop is largely attributed to high domestic gold prices and Prime Minister Narendra Modi's repeated appeals to avoid buying the precious metal. This significant reduction in demand raises concerns about potential impacts on global bullion prices.
Despite a recent dip in international gold prices, the cost of 22-karat gold in New Delhi remained high at 136,000 rupees per 10 grams in October, up from 112,000 rupees a year ago. Retailers, however, claim they have sufficient stock to meet the needs of the upcoming festival and wedding seasons.
The sudden decline in imports could signal a shift in consumer behavior in India, the world's second-largest gold market. Analysts are watching closely to see if this trend continues, as it may influence global gold price dynamics in the coming months.