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Letter From New Delhi
‘I have to buy her gold’: Behind India’s fixation with the precious metal
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Retail gold prices in India follow international trends, but import duties and other taxes add another 9 or 10 per cent to the total cost.
PHOTO: REUTERS
- Gold is deeply embedded in Indian tradition, serving as savings, security, and a societal obligation for families across all classes.
- Rising and volatile gold prices burden Indian families, forcing them to reduce purchases or seek workarounds, impacting household budgets and India's trade deficit.
- Despite price volatility and economic pressure, India's demand for gold remains consistently high due to its cultural significance and social security role.
AI generated
NEW DELHI – When Ms Sushila Sangwan started planning her son’s wedding in early 2025, she had planned to gift 800g of gold jewellery to the bride.
But by the time the wedding came around in December, she had cut that amount in half as the wedding budget was torpedoed by rising gold prices, with 80 per cent of the expenditure going towards the precious metal.
