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Rising ETF demand renews focus on India’s structural reliance on gold imports
India’s rising preference for gold, including ETFs, highlights deep cultural roots and risk aversion, while reinforcing the country’s continued dependence on gold imports and related macroeconomic challenges.
Growing investor interest in gold, particularly through financial instruments such as gold ETFs, has brought renewed attention to India’s long standing dependence on gold imports. Despite minimal domestic production, India remains among the world’s largest gold consumers due to deep rooted cultural practices, where gold plays a central role in weddings, festivals, and household savings.