India's 15% Gold Duty Returns, Reigniting Smuggling Fears Across Jewellery Trade
New Delhi has reversed the July 2024 cut to 6%, restoring the 15% gold import duty to defend the current account. Jewellers warn the higher levy will revive Dubai-routed smuggling, with wedding and festival demand too price-inelastic to deter grey-market flows.
India's reinstated 15% gold import duty, reversing the July 2024 cut to 6%, reignites debate on tariff efficacy. Jewellers warn higher duties revive smuggling via Dubai, while policymakers cite current account deficit management amid price-inelastic wedding and festival demand.