Gold demand crashes 70% in fortnight after India doubles import duty to 15%
Jewellery buying collapsed across India after the May 13 duty hike from 6% to 15% pushed effective tax to 18.45%. Joyalukkas reports 35%+ sales decline; fortnight volumes fell to 7.5 tonnes from 25 tonnes. Retailers see shift to lighter pieces and a surge in old-gold resale, with small unorganised players hit hardest.
Gold demand in India fell 70% in the fortnight after the government doubled import duty to 15% on May 13. Joyalukkas reports 35%+ decline; jewellers see shift to lighter jewellery and surge in old-gold resale, hitting unorganised and small retailers hardest.
Why this matters
Joyalukkas faces its sharpest demand shock of the year as the duty hike doubles tax burden, accelerating a consumer shift toward lighter pieces and old-gold exchange over fresh purchases.
Footfall theme steady with 77 signals in 90d, but this duty-driven collapse marks a sharp deviation.