The growth comes alongside a sharp rise in gold-backed investment products. Gold ETF assets in India increased from around ₹72,500 crore in August 2025 to ₹1.91 lakh crore in August 2026, a rise of about 164% over the year, the data showed. Silver ETFs had assets of around ₹85,000-86,000 crore during the same period.
The trends point to growing investor interest in diversification across asset classes, although the AUM of multi-asset funds cannot be treated as direct exposure to commodities, as these schemes invest across equities, debt and other asset classes.
The increasing role of commodities in portfolios was discussed at Emkay Global Financial Services’ commodities conference in Mumbai on Tuesday. Participants highlighted gold, industrial metals and commodity derivatives as areas gaining greater relevance in portfolio construction and risk management.
Sheela Kulkarni, Head of Market Development, Investments and Institutional Investor Relationships, India, World Gold Council, said gold can provide returns, diversification and liquidity within a portfolio.
Gold’s role is also being supported by central-bank demand. According to the data presented at the conference, emerging-market central banks hold an average of around 15% of their reserves in gold, compared with around 30% for developed-market central banks.
The shift is not limited to precious metals. Demand for industrial commodities such as copper and aluminium is expected to receive structural support from electrification, renewable energy and transmission infrastructure.
Aurobinda Gayan, Founder and CEO, Bluglance Consulting, said copper has emerged as a strong performer among base metals on a risk-adjusted basis, but investors need to consider factors such as carry costs, market structure and supply constraints rather than focusing only on price movements.
The expansion of commodity markets is also visible in derivatives trading. Average daily futures and options turnover on the Multi Commodity Exchange (MCX) was around ₹5.4 lakh crore in FY2025-26, while about 20.9 lakh clients traded in futures and options during the year, according to data presented by Emkay.
Precious metals accounted for the bulk of futures activity, with gold contributing around 43% and silver around 34% of turnover in the fourth quarter of FY2025-26.
The regulatory framework is also opening up to greater institutional participation. The Securities and Exchange Board of India (SEBI) has approved wider participation by foreign portfolio investors (FPIs) in non-agricultural commodity derivatives, including commodity index derivatives and non-cash-settled contracts, subject to prescribed safeguards.