‘India’s gold demand for 2022 to be over 800 tonne’

Chennai: India’s demand for gold will be between 800-850 tonne in 2022, said a top official of World Gold Council-India.

He also said 80 per cent of the demand will be for jewellery and the balance in the form of gold coins.

The gold demand in India for 2022 will be above 800 tonne. It will be between 800 tonne to 850 tonne. The 5 per cent duty hike on the gold by the Central government will not have any major impact on the demand for the yellow metal, said Somasundaram P.R., Regional CEO India, World Gold Council.

In 2021, the demand for gold in India was about 797 tonne.

He also said the Indian government is watching the rupee: dollar exchange. The government may act against imports if the rupee continues to depreciate against the dollar.

On the impact of the India International Bullion Exchange (IIBE) Somasundaram said it is important for India. With a robust regulatory framework, the exchange is an important component.

As the second largest consumer of gold in the world, the bullion exchange will position India in the global market and also give a voice.

“If the Indian gold refiners can align with the global standards then Indian gold bars can also be traded on the exchange,” Somasundaram added.

The IIBE will be inaugurated by Prime Minister Narendra Modi on July 29 in Gujarat