SBI flags 15% gold duty risk: higher domestic prices, grey-market leakage, jewellery sourcing squeeze
SBI Research warns India's gold import duty hike to 15% (from 6%) could push up domestic prices and divert supplies to grey channels, pressuring CAD after $57.9bn FY25 and projected $72.4bn FY26 imports. A 5% volume decline may soften, not offset, the hit to organised jewellery retailers' sourcing economics.
SBI Research warns that India's gold import duty hike to 15% may raise domestic prices, divert supplies to grey channels and widen CAD pressures, though recent volume declines could moderate the impact on jewelry retail sourcing.
Why this matters
SBI Research's note frames a policy-driven cost shock for organised jewellery retailers, linking duty hikes to grey-market leakage and CAD risk amid rising gold import bills.
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