Domestic gold exchange-traded funds (ETFs) saw their holdings jump 65 per cent to 95 tonnes in 2025, elevating Indian ETFs to sixth place globally, going by holdings of the yellow metal.
Photograph: Hiba Kola/Reuters
At the end of 2024, they ranked eighth with 57.5 tonnes of holding, according to an analysis of data from the World Gold Council (WGC).
In terms of net inflows, India remained the third-largest ETF market last year. WGC estimates the net inflows into Indian gold ETFs at $4.4 billion, up 3.4 times compared to the $1.3 billion inflows in 2024.
The US and China remained the top two markets with net inflows of $50 billion and $15.5 billion, respectively.
“Globally, gold ETFs witnessed strong investor interest, with net inflows of around $88.5 billion during the year, while India emerged as one of the key contributors.
“It ranked among the top three countries worldwide in terms of gold ETF inflows.
“Consistent traction in gold ETFs in India reflects a growing preference for regulated schemes,” said Vikram Dhawan, head of commodities and fund manager, Nippon India Mutual Fund.
Nippon India ETF Gold BeES, which is the largest gold ETF in India, was among the top 15 gold ETFs globally in terms of net inflows, the fund house said in a release citing WGC data.
The surge in gold ETF holdings comes amid a broader expansion of the precious metals’ ETF space in India last year. Assets under management (AUM) of gold and silver ETFs crossed Rs 2 trillion in December, up nearly fourfold from the start of the year.
It was driven by record inflows and a sharp rally in prices. Gold ETF AUM jumped three-fold during the year from Rs 44,600 crore to Rs 1.3 trillion.
Gold ETFs attracted an all-time high inflow of about Rs 11,647 crore in December, while silver ETF inflows more than doubled month-on-month (M-o-M).
Investor participation also widened, with gold ETF folios rising sharply and silver ETF accounts expanding multiple times during the year.
This reflects growing acceptance of ETFs as a preferred investment route for precious metals.
The sharp rise in investor interest came amid a sharp rally in gold prices.
“Gold has experienced a remarkable 2025, returning over 60 per cent.
“This performance has been supported by a combination of heightened geopolitical and economic uncertainty, a weaker US dollar, and positive price momentum.
“Both investors and central banks have increased their allocations to gold, seeking diversification and stability,” WGC said in its outlook.
Key points
- Gold ETFs attracted an all-time high inflow of about Rs 11,647 crore in December
- Nippon India ETF Gold BeES was among the top 15 gold ETFs globally
