Gold demand in India to continue to grow in the next decade
Posted on: 01/Apr/2011 2:24:06 AM
Gold demand in India to continue to grow in the next decade, strengthening its position as the heart of the global gold market
Indian gold demand has grown 25 per cent despite 400 per cent price rise of the rupee in the last decade. Research reaffirms India as a key driver of global gold demand, expects increase by over 30 per cent in real terms.
The World Gold Council research shows that by 2020 cumulative annual demand for gold in India will increase to excess of 1200 tonnes or approximately Rs. 2.5 trillion, at current price levels.
India’s continued rapid growth which will have significant impact on income and savings, will increase gold purchasing by almost 3% per annum over the next decade. In gold terms, India is a market with significant scale. In 2010, total annual consumer demand reached 963.1 tonnes. As seen in the last decade, Indian demand for gold will be driven by savings and real income levels, not by price.
India: Heart of Gold is the second in a series of research with focus on India. The first paper, India Heart of Gold: Revival was released in November 2010, and focussed on the historical demand of the past 10 years and the revival in 2010. Together they form a compendium, with the latest research including forecasts from the Centre for Monitoring the Indian Economy (CMIE), as well as contributions from leading academics and industry experts, Dr. D. Pattanaik and Dr. R. Kannan, which have been specially commissioned for the World Gold Council.
Ajay Mitra, Managing Director, India and the Middle East, World Gold Council, said: “The rise of India as an economic power will continue to have gold at its heart. India already occupies a unique position in the world gold market and, as private wealth in India surges over the next ten years, so will Indian demand for gold.”
