Gold mining is a global business with operations on every continent, except Antarctica, and gold is extracted from mines of widely varying types and scale. On average, it takes between 10-20 years before a gold mine is even ready to produce material that can be refined. At a country level, China was the largest producer in the world in 2020 and accounted for around 11 per cent of total global production.
Top 15 Gold producing countries
Switzerland, UAE, Ghana, South Africa and USA are the five largest gold import partners of India. Swiss gold accounted for almost half of India’s imports of the yellow metal, at $16.3 billion, in 2020-21. India imported gold worth $34.6 billion last fiscal against $28.2 billion in the previous year despite the raging Covid-19 pandemic.
Monthly Dore Imports to India from different countries
In 2020, India imported gold worth $4.19 billion from the UAE, followed by South Africa at $2.5 billion. Unwrought forms of gold including bars, gold plated with platinum or in semi manufactured forms and powder forms were the key items that India imported.
Monthly gold imports by Sectors
Duty paid Gold Imports from banks and Direct import by exporters constitute the major part of Gold imports by sector.
India Gold Supply
India fulfils its Gold Demand of around 800 tonnes every year from 85% Imports and 15% from Scrap supply.
India Gold Demand
Between 2010 to 2013, India Gold Demand was highest around 1000 tonnes, but gradually it has decreased to around 700 tonnes in 2019. And in 2014 China overtook India becoming the largest consumer of Gold in the world. In India, 60-70% gold demand comes from Jewellery sector, while 20-25% demand comes from Bar & Coins. Year 2020 was an exception of lower imports and demand due to COVID-19 pandemic.