India gold demand fell 6% in Q2 as import-duty hike squeezed jewellery buying
India’s jewellery demand dropped 15% year-on-year to 75 tonnes in April–June, with higher duties and elevated prices pushing shoppers toward exchanges. Some jewellers said exchange purchases accounted for up to 70% of sales as grey-market inflows pressured organised retail.
India’s gold demand fell 6% in Q2 as higher import duty, subdued seasonal buying and high prices cut jewellery demand 15%. Grey-market inflows hurt organised jewellers, while exchange schemes gained prominence, accounting for up to 70% of sales at some retailers.
Why this matters
The decline follows World Gold Council’s report that Q2 gold spending rose 50% despite lower volumes and its warning that the duty hike could cut India demand by about 10%.
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