National News
India gold jewellery demand dropped by 23% , total investment demand rose by 6% : WGC Q4 2025 Report
According to a World Gold Council (WGC) report released on January 30, 2026, India’s Q4 2025 gold demand showed a stark contrast between sectors: record prices caused jewellery demand to drop by 23% to 145.3 tonnes, while total investment demand rose 26% to 96.0 tonnes, indicating a shift towards gold as a hedge against volatility.
Key Highlights from the WGC Report (Q4 2025 & Outlook):
- Jewellery Demand Decline: Despite the wedding season, high prices and reduced affordability led to a 23% drop in jewellery demand to 145.3 tonnes in Q4.
- Investment Surge: Investment demand (bars/coins) grew strongly, with total investment in Q4 rising 26% year-on-year to 96.0 tonnes, and its value rising 108% to ₹120,700 crores.

- Full-Year 2025 Impact: Overall gold demand in India fell 11% to 710.9 tonnes in 2025.
- Outlook for 2026: The WGC projects India’s total gold demand for 2026 to be in the range of 600-700 tonnes, as high prices continue to affect consumer buying behavior, despite strong investor interest in ETFs and digital gold.
- Import and Recycling: Gold imports in Q4 2025 fell 5% to 215.1 tonnes, and recycling decreased by 27% to 21.7 tonnes, indicating consumers were holding onto existing gold rather than selling.
The shift highlights a, where record high prices, which saw a 76.5% surge in 2025, have reduced consumer buying of jewelry while encouraging investment.
source : WGC
National News
NPCI Defers Rollout Of UPI Merchant Discount Rate Until After Diwali
Given Typical Retail Margins Of 2%–6% On Bullion and Plain Gold Jewellery, Absorbing A 0.4% Fee—Or Up To ₹300 Per Large Transaction—Would Have Directly Eaten Into Festive Profitability. The Deferral Keeps Bottom Lines Protected Through Dhanteras and Diwali.
The National Payments Corporation of India’s (NPCI) UPI and Services Steering Committee has deferred the implementation of Merchant Discount Rates (MDR) on select person-to-merchant (P2M) UPI transactions until immediately after Diwali.
The move aims to protect consumer sentiment and keep operational costs steady for businesses during the peak festive shopping season. A specific implementation date will be announced separately.
Key Highlights
- Festive Relief for Retail: The deferment ensures merchants face no additional payment processing costs during peak festive demand, helping avoid disruptions to consumer spending.
- The Approved MDR Structure:
- Applies only to eligible P2M transactions above Rs 2,000 at a rate of 0.4%.
- Capped at Rs 300 for high-value transactions of Rs 75,000 and above.
- Everyday low-value payments and small merchants remain fully exempt, preserving zero-cost digital transactions for general consumers.
- Timeline Adjustment: Originally notified on September 15 for an October 15 rollout, the framework will now take effect post-Diwali, giving banks, payment aggregators, and merchants additional runway to align their systems and communicate terms clearly.
Jewellery purchase values routinely exceed the Rs 2,000 threshold and frequently touch or surpass the Rs 75,000 cap. Given typical retail margins of 2%–6% on bullion and plain gold jewellery, absorbing a 0.4% fee—or up to Rs 300 per large transaction—would have directly eaten into festive profitability. The deferral keeps bottom lines protected through Dhanteras and Diwali.
Introducing transaction fees just as footfall surges would have forced retailers to decide whether to absorb the cost or pass it on to buyers (via checkout surcharges or selective discounts). Avoiding this choice prevents awkward billing counter negotiations and cart abandonment during rush hours.
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