Gold imports crash 70% after India hikes duty to 15%; jewellery demand in firing line
Monthly gold imports collapsed to 25-30 tonnes from 75-100 tonnes after the government raised import duty on gold and silver to 15% effective May 13. May imports stood at $3.41 billion, with April-May totalling $9.04 billion (up 60.14% YoY). The jewellery trade, which absorbs most domestic gold, faces direct margin and volume pressure.
India's gold imports have plunged nearly 70% to 25-30 tonnes monthly after the government raised import duty on gold and silver to 15% from May 13, directly impacting the jewellery industry which drives most domestic demand.