India's gold ETFs reverse inflows with ₹7.25 billion May outflow
Business
For the first time in a year, Gold exchange-traded funds (ETFs) saw more money leave than come in: ₹7.25 billion net outflow in May 2026.
This shift happened right after PM Modi asked people to hold off on buying gold for a year to help reduce India's gold import bill, and the government bumped up customs duty on precious metals from 6% to 15%.
May redemptions exceed inflows, assets rise
Gold prices have been hitting all-time highs lately, so many investors took the chance to cash out and book profits.
In May, gross inflows were ₹26.05 billion, but redemptions were even higher at ₹33.3 billion.
Interestingly, despite these outflows, the total assets managed by Gold ETFs actually grew, from ₹1.78 trillion in April to ₹1.85 trillion, thanks to rising gold values.