India gold demand crashes 70% after duty hike to 15%

Fortnightly gold offtake collapsed to 7.5 tonnes from 25 tonnes after import duty jumped from 6% to 15%, lifting effective tax to 18.45%. Joyalukkas reports 35% sales drop; bar/coin demand bucks trend at +34% to 62.3 tonnes as prices hit ₹1.57 lakh/10g. Smaller jewellers hit hardest.

— Filed Sat, 30 May, 2026, 11:15 IST · Source ET Retail · Updated

Gold demand in India slumped 70% to 7.5 tonnes in the fortnight after duty hike from 6% to 15%. Joyalukkas reports 35% drop; smaller jewellers hit hardest, while chains lean on bridal demand and inventory buffers.

Why this matters

IBJA's data shows a sharp demand collapse in jewellery offtake while investment-grade bar and coin demand rises 34%, signaling a structural shift toward gold as a hedge rather than ornamental purchase amid record ₹1.57 lakh/10g prices.

Retail-brand theme steady with 738 signals in 90d, indicating sustained consumer-facing activity.