From gold consumer to global powerhouse: How India refines, designs, and dominates

Sun Oct 04 2026

India’s true global influence stems not from pulling ore out of the ground, but from what happens after imported bullion arrives at its ports. As modern consumers demand ethical supply chains and verified provenance, the global jewellery trade is undergoing a structural shift.

Ask anyone about India’s relationship with gold, and the conversation usually turns to grand weddings, festive buying during Dhanteras, or family vaults passed down through generations. It is a familiar story: India as a voracious consumer, absorbing around 700 to 800 tonnes of physical gold every year. According to World Gold Council data, India accounts for nearly 15 per cent of total global gold demand (768 tonnes) and roughly 28 per cent of global jewellery demand (430.5 tonnes).

Yet, treating India merely as a giant sink for the world’s precious metals misses the real story. India holds little to no domestic gold mines of its own. Its true global influence stems not from pulling ore out of the ground, but from what happens after imported bullion arrives at its ports.  India’s annual gold import bill often hovers around the $59 billion mark, making bullion one of the largest components of the nation’s import balance alongside crude oil. Rather than viewing this outflow simply as an economic cost, the industry treats raw gold as a vital input for a massive, export-focused manufacturing engine.

The country’s provisional gems and jewellery exports reached approximately $27.71 billion in FY2026. This trade spans cut and polished diamonds, intricate gold and silver jewellery, and lab-grown gemstones.

In fact, India processes over 90 per cent of the world’s cut and polished diamonds by volume, representing roughly a quarter of global diamond exports.

Source: https://www.thehindubusinessline.com/