According to a report by Reuters, India splurged around $55.7 billion on gold imports in the year 2021. The amount is more than double of which was spent in the year 2020. In the year 2020, India was estimated to have spent around $22 billion on gold imports. Whereas, the previous high was set in the year 2011, at $53.9 billion.
In terms of volume, India has imported nearly 1050 tonnes of gold in 2021, which is the highest in the decade, and also more than 430 tonnes imported in the year 2020. Gold is considered very essential in Indian weddings. Especially, for brides. “Last year demand was robust as lots of weddings were postponed to 2021 from 2020 because of the coronavirus outbreak,” said Harshad Ajmera, a gold wholesaler in Kolkata.
During the first wave of the COVID-19 pandemic, Indian authorities imposed strict rules and regulations for the lockdown which eventually hampered the wedding season, resulting in high gold prices. Local gold prices hit a record high of 56,191 rupees ($754) per 10 grams in August 2020 but fell back to 43,320 rupees in March 2021.