India Gold Demand Falls 70% After Sharp Import Duty Increase

Demand dropped to about 7.5 tonnes from roughly 25 tonnes a year earlier after the duty hike, according to the source.

Summary

Gold demand in India fell about 70% after a sharp import duty increase, with purchases dropping to roughly 7.5 tonnes from around 25 tonnes in the same period a year earlier. The figures point to a significant slowdown in physical buying in one of the world’s largest gold markets, where higher duties can raise domestic prices and reduce consumer demand.

Terms & Concepts
  • Import duty: A tax imposed on goods brought into a country, which can raise local prices and reduce demand.
  • Physical gold demand: Purchases of actual gold, such as bars, coins, or jewelry, rather than paper-based financial exposure.