Yellow fever: India's gold demand over the past 10 years

Of late, gold has become a pain for policymakers in India. Finance minister P Chidambaram blames gold imports for the widening current account deficit.

Their fears are compounded as the yellow metal’s price had come under pressure after the dollar strengthened recently. The demand for gold surges in India every time there is a price correction.

Are the policymakers and regulators justified in making gold the scapegoat for India’s economic problems?

Though there’s no clear answer to that, one thing is certain, India’s love affair with gold just grows stronger year-on-year.

We look at the rising demand for gold in India and how it has increased in the last decade.

Source: World Gold Coucil

Year: 2003

India Gold Demand (in tonnes): 528

Value ($/billion): 6.2

Value (Rs/billion): 287

Gold price ($/oz, Annual Avg): 363.3

Gold price (Rs/10g, Annual Avg): 5,435.1

…

Year: 2004

India Gold Demand (in tonnes): 617.7

Value ($/billion): 8.1

Value (Rs/billion): 367.9

Gold price ($/oz, Annual Avg): 409.2

Gold price (Rs/10g, Annual Avg): 5,955.6

…

Year: 2005

India Gold Demand (in tonnes): 709.1

Value ($/billion): 10.1

Value (Rs/billion): 446.8

Gold price ($/oz, Annual Avg): 444.5

Gold price (Rs/10g, Annual Avg): 6,301.3

…

Year: 2006

India Gold Demand (in tonnes): 712

Value ($/billion): 13.8

Value (Rs/billion): 626.2

Gold price ($/oz, Annual Avg): 603.8

Gold price (Rs/10g, Annual Avg): 8,796

…

Year: 2007

India Gold Demand (in tonnes): 771.1

Value ($/billion): 17.3

Value (Rs/billion): 711.2

Gold price ($/oz, Annual Avg): 695.4

Gold price (Rs/10g, Annual Avg): 9,223.7

…

Year: 2008

India Gold Demand (in tonnes): 823.2

Value ($/billion): 23.1

Value (Rs/billion): 999.7

Gold price ($/oz, Annual Avg): 872

Gold price (Rs/10g, Annual Avg): 12,142.6

…

Year: 2009

India Gold Demand (in tonnes): 642.4

Value ($/billion): 20

Value (Rs/billion): 970.7

Gold price ($/oz, Annual Avg): 972.4

Gold price (Rs/10g, Annual Avg): 15,111.3

…

Year: 2010

India Gold Demand (in tonnes): 1,006.3

Value ($/billion): 39.6

Value (Rs/billion): 1,811

Gold price ($/oz, Annual Avg): 1,224.5

Gold price (Rs/10g, Annual Avg): 17,997.3

…

Year: 2011

India Gold Demand (in tonnes): 986.3

Value ($/billion): 49.8

Value (Rs/billion): 2,330.1

Gold price ($/oz, Annual Avg): 1,571.5

Gold price (Rs/10g, Annual Avg): 23,624.1

…

Year: 2012

India Gold Demand (in tonnes): 864.2

Value ($/billion): 46.4

Value (Rs/billion): 2,475.02

Gold price ($/oz, Annual Avg): 1,669

Gold price (Rs/10g, Annual Avg): 28,639.4