India's Gold Demand Crashes 29%: Modi's Appeal, High Prices Hit Buying Appetite

India's appetite for gold is losing its shine. According to the latest World Gold Council report, India's gold demand plunged 29% year-on-year to nearly 163 tonnes during the July–September quarter of 2026. Jewellery demand fell 20%, while purchases of gold bars and coins crashed 40%. The sharp slowdown comes amid elevated gold prices, higher import duties and Prime Minister Narendra Modi's September 1 appeal to curb gold purchases. However, demand was already weakening before September, making it difficult to isolate the impact of the appeal. India's gold import bill has also collapsed, falling from $5.63 billion in April to just $1.80 billion in September. Meanwhile, gold prices have declined significantly from their February levels, yet buyers remain cautious. Will the upcoming wedding and festive season revive demand? Could gold prices fall further? And what does this changing investment behaviour mean for India's gold market? Watch our detailed report featuring insights from Mirae Asset Mutual Fund CEO Swarup Mohanty.