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Informist, Monday, Feb. 23, 2026

--RBI Malhotra: Not unduly worried about demand for gold import 
--Sitharaman: Gold price spike largely due to central banks' demand 
--Sitharaman: Gold demand, prices in India capped at a level 
--Sitharaman: Gold demand in India not reached alarming proportions 
 

NEW DELHI – Finance Minister Nirmala Sitharaman said Monday that gold demand in India has not reached alarming proportions. Gold demand and prices in India were capped at a level, she said at a press conference after addressing the central board of the Reserve Bank of India.

 

"Gold has always been a favoured investment for households, whether as an asset class or for jewellery," she said. "So, high-pitched demand for domestic consumption also sees a seasonal spike during festival season, during Akshay Tritiya and so on. We are watching it, but I am not sure it has reached such alarming proportions, given the tendency or natural thing as it is in India for investing in gold, buying gold. And therefore, I think it's not gone in that sense beyond a certain limit."

 

Sitharaman further said that India's domestic gold consumption, which typically sees seasonal spikes during festivals and household purchases, is affected because of the increase in gold and silver prices globally, which are much beyond the usual increases and fluctuations that happen in the precious metal market

 

Sitharaman attributed the gold price spike to demand from central banks and said it is driving up global prices. "Most countries, particularly their central banks, are buying gold and silver and storing them... so the international price of gold or silver, spiking up and down."

 

Speaking at the same press conference, Reserve Bank of India Governor Sanjay Malhotra said the central bank was assessing the situation on gold imports. "We are not going to be concerned about gold imports, especially because our external sector continues to be very robust and strong. If you look at numbers from April to December, the quantity of gold, in value terms, there was hardly any increase," Malhotra said. 

 

According to government data, India's gold imports rose 1.8% on year to $49.39 billion in Apr-Dec.

End

 

Reported by Vaishali Tyagi

Edited by Saji George Titus

 

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