India’s gold market is expected to face a demand slowdown in 2026 following a rise in import duties, with the higher costs likely to reduce consumer purchases and impact overall consumption, according to the World Gold Council (WGC).
The duty increase could potentially cut India’s gold demand by up to 60 tonnes in 2026 as higher import costs may translate into elevated retail prices. The move is expected to affect jewellery buying, investment demand, and overall market sentiment.
India, one of the world’s largest gold consumers, relies heavily on imports to meet domestic demand. Any increase in import-related costs can influence buying patterns, particularly during price-sensitive periods and key festive seasons.
Industry participants said jewellers may face pressure from weaker consumer interest as buyers adjust to higher prices. However, strong cultural demand for gold during weddings and festivals is expected to provide some support to the market.
The WGC noted that while higher duties may weigh on short-term consumption, long-term demand for gold in India remains supported by its role as a traditional store of wealth and a preferred investment asset.