Duty hike to 15% and austerity push reroutes Indian gold demand from jewellers to ETFs
Government's import duty hike from 6% to 15% and PM's austerity appeal are accelerating a shift from physical jewellery to Gold ETFs. January 2026 ETF inflows hit Rs 24,000 cr, investment volumes up 54% YoY to 82 tonnes, while MCX gold surged 81% YoY. Jewellery retailers face margin and footfall pressure.
Government's gold import duty hike to 15% and PM's austerity appeal may push Indian consumers from physical gold and jewellery toward Gold ETFs, pressuring jewellery retailers while investment-led demand surges, with January 2026 ETF inflows hitting Rs 24,000 crore.