India’s 15% gold import duty lifts grey-market inflows and squeezes organised trade, WGC says
AI Market Summary
India's hike in gold import duty to 15% (18% including GST) is pushing flows into unofficial channels, widening grey-market arbitrage and pressuring organized importers and jewelers. WGC data show net imports fell 23% y/y to 98.1 tons in the June quarter and total demand slipped 6% as jewellery consumption weakened. Near-term physical-market activity in a key demand center looks constrained while enforcement actions rise.
Impact level
● Medium
Affected assets
NCCOGOLD2USD/USDT+1.63%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▼ Bearish
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India raised its gold import duty to 15% on May 13, taking the total tax burden to 18% when combined with 3% GST, in a bid to curb demand, narrow the trade deficit and support the rupee. World Gold Council (WGC) data show net gold imports in the June quarter fell 23% year on year to 98.1 tons, the lowest since September 2020. Total gold demand over the same period dropped 6% to 131.4 tons, mainly due to weaker jewellery consumption. The policy has directly disrupted physical gold flows and end demand.
