<p>India's gold consumption increased by close to 80 per cent to nearly 800 tonnes year-on-year in 2021 and is likely to see a further rise in 2022, said the World Gold Council in a report released Friday, threatening to up trade deficit and weakening the country's currency at a time when the government wants to lift the pandemic-ravaged economy.</p>.<p>India's gold consumption is expected to be 850 tonnes in 2022 from 797.3 tonnes in 2021 and 446 tonnes in 2020, the report said giving ample reason to the government to announce a duty rejig on the yellow metal in the Union Budget in order to check its illegal trade, which often rises in proportion to imports.</p>.<p>Gold jewellery demand by the world's second-largest gold consumer nearly doubled to 611 tonnes in 2021 from 316 tonnes in 2020.</p>.<p>The report further noted that jewellery demand during 2021 was up by 93 per cent at 610.9 tonnes, compared to 315.9 tonnes in 2020. The was a six-year high and surged past the pre-pandemic levels</p>.<p>In value terms, jewellery demand skyrocketed by 96 per cent to Rs 2,61,140 crore, from Rs 1,33,260 crore in 2020.</p>.<p>According to WGC Regional CEO, India, Somasundaram PR, easing of lockdown restrictions last year and successful progress of the vaccination programme coupled with economic growth altered consumer sentiment significantly, triggering spending and investments across the board during festivals like Dussehra and Dhanteras.</p>.<p>"Demand for gold in the consumer-driven jewellery and technology sectors recovered throughout the year in line with economic growth and sentiment, while central bank buying also far outpaced that of 2020. Investment demand was mixed in an environment of opposing forces: high inflation competed with rising yields for investors’ attention," said the report. </p>.<p>Central banks accumulated 463 tonnes of gold in 2021, 82 per cent higher than the 2020 total and lifting global reserves to a nearly 30-year high. The pace of buying slowed in the second half, with a 22 per cent y-o-y decline in October-December of 2021.</p>.<p><strong>Check out the latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
<p>India's gold consumption increased by close to 80 per cent to nearly 800 tonnes year-on-year in 2021 and is likely to see a further rise in 2022, said the World Gold Council in a report released Friday, threatening to up trade deficit and weakening the country's currency at a time when the government wants to lift the pandemic-ravaged economy.</p>.<p>India's gold consumption is expected to be 850 tonnes in 2022 from 797.3 tonnes in 2021 and 446 tonnes in 2020, the report said giving ample reason to the government to announce a duty rejig on the yellow metal in the Union Budget in order to check its illegal trade, which often rises in proportion to imports.</p>.<p>Gold jewellery demand by the world's second-largest gold consumer nearly doubled to 611 tonnes in 2021 from 316 tonnes in 2020.</p>.<p>The report further noted that jewellery demand during 2021 was up by 93 per cent at 610.9 tonnes, compared to 315.9 tonnes in 2020. The was a six-year high and surged past the pre-pandemic levels</p>.<p>In value terms, jewellery demand skyrocketed by 96 per cent to Rs 2,61,140 crore, from Rs 1,33,260 crore in 2020.</p>.<p>According to WGC Regional CEO, India, Somasundaram PR, easing of lockdown restrictions last year and successful progress of the vaccination programme coupled with economic growth altered consumer sentiment significantly, triggering spending and investments across the board during festivals like Dussehra and Dhanteras.</p>.<p>"Demand for gold in the consumer-driven jewellery and technology sectors recovered throughout the year in line with economic growth and sentiment, while central bank buying also far outpaced that of 2020. Investment demand was mixed in an environment of opposing forces: high inflation competed with rising yields for investors’ attention," said the report. </p>.<p>Central banks accumulated 463 tonnes of gold in 2021, 82 per cent higher than the 2020 total and lifting global reserves to a nearly 30-year high. The pace of buying slowed in the second half, with a 22 per cent y-o-y decline in October-December of 2021.</p>.<p><strong>Check out the latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
