I think you're confused because of your perception about India. Sorry, but here I'm just trying to say that Indian people (including farmers) hold much more Gold just because they are traditionally inclined to hold it. I think, you need to attend an Indian marriage of a middle class or rich family to understand how much Indians love Gold. Also, India wasn't called a 'Golden Bird' for nothing. There's still lot of Gold which people pass generation to generation.

https://m.stacker.news/44627
These are numbers for the gold which is on record. If you include unnotified Gold, you would need to double these figures. And, believe it or not it's a reality.
In case you don't believe it. Let me tell you a figure.

Suppose every Indian holds only 20 grams of Gold, calculate how much that would be!!

And then read these...

https://www.businesstoday.in/opinion/story/opinion-mobilising-indias-domestic-gold-426898-2024-04-25