India’s Gold ETFs Record $902M Inflows, Up 285% in Sep 2025

India’s Gold Exchange-Traded Funds (ETFs) recorded inflows of $902 million in September 2025. This represents a sharp 285% surge from $232 million in August. According to data from the World Gold Council, this was the highest-ever monthly inflow for Indian gold ETFs and the largest in Asia. The rise also marked the fourth straight month of inflows, reflecting consistent demand despite volatility in equities and global uncertainty. 

Global and Regional Gold ETF Trends

Globally, total inflows reached $17.3 billion. It is led by the United States ($10.3 billion), followed by the United Kingdom ($2.23 billion) and Switzerland ($1.09 billion). Therefore, India ranked 4th worldwide for the month with $902 million.

In Asia, gold ETFs recorded combined inflows of $2.1 billion. Here, China ($622 million) and Japan ($415 million) contribute the most to regional activity. But India’s inflows are the highest on record for any Asian market. This shows the growing investor confidence in gold-backed instruments. 

India’s Performance and Market Drivers

India’s strong inflows into gold ETFs reflect a clear shift in investor sentiment. With equity markets showing volatility and global growth prospects uncertain, many investors turned to gold for stability and diversification.

Analysts attribute this to two factors: currency movements and stable asset investment. 

The rupee’s relative weakness against the dollar made gold more attractive domestically, while continued geopolitical tensions and trade risks pushed investors to protect their portfolios.

Additionally, the US Federal Reserve’s 25-basis-point rate cut in September added to optimism around gold. The consistent inflows since June show that Indian investors are increasingly viewing gold ETFs as a core part of their long-term investment strategy.

Year-to-Date Gold ETF Performance

Indian Gold ETFs had attracted $2.18 billion in inflows by Sept 2025, the highest ever for a single year. 

The table below compares India’s gold ETF inflows over the last four years:

End Note

Experts believe the trend may continue through the festive season, as investors rebalance their portfolios to include more stable assets. The combination of ease of access, liquidity, and transparency makes gold ETFs one of the most efficient ways to gain exposure to the metal without the hassles of physical storage.

Source: MoneyControl

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