India’s gold demand increased by 19.2 per cent to 76.1 tonne during the April-June quarter this year, largely due to low base effect, owing to the nationwide lockdown that had hit economic activity last year, the World Gold Council (WGC) said in a report on Thursday. 

The overall gold demand during the second quarter of 2020 calendar year had stood at 63.8 tonnes, according to the WGC’s Gold Demand Trends Q2 2021 report. 

In value terms, India’s gold demand witnessed 23 per cent growth during the April-June 2021 quarter at Rs 32,810 crore compared to Rs 26,600 crore during the corresponding period of 2020.

However, demand plunged by 46 per cent quarter on quarter as the second wave of COVID-19 hit the nation, according to the report.

“Demand in H1 totalled 157.6 tonnes, which was 46 per cent below H1 2019 and 39 per cent lower than the H1 average from 2015 and 2019,” the WGC data stated. 

“The second quarter of 2021 was marked by widespread regional lockdowns following a rise in COVID infections. Unlike the previous year when a national lockdown took businesses by surprise, this quarter was relatively better as businesses were more prepared. 

“Demand in Q2 2021, showed a 19.2 per cent year-on-year increase on a very low base of Q2 2020, the impact was, however, severe as it muted demand during Akshaya Tritiya and wedding season in Q2,” WGC Regional CEO (India) Somasundaram P R said. 

Total jewellery demand during the second quarter was up by 25 per cent at 55.1 tonnes compared to 44 tonnes in the same quarter last year, the report said.