India gold demand collapse on duty hike
Key Questions
How has India's gold demand changed after the duty hike?
India's gold demand plunged 70% after the import duty was doubled to 15%, with premiums shifting to a $150 discount.
What risks does the duty increase create?
The sharp drop in demand could spur smuggling and may eventually lead to a policy reversal.
What other factors are affecting India's gold market?
The RBI paused rates while raising inflation forecasts, contributing to weaker gold demand.
India's gold demand plunged 70% after import duty doubled to 15%. Premiums cratered from $14 to $150 discount. RBI rate pause and inflation fears noted. Could spur smuggling and eventual policy reversal. No new updates.
Sources (1)
Updated Jun 13, 2026