India’s gold imports have witnessed a sharp decline following the recent increase in import duties, with official estimates indicating a drop of around 70% to approximately 30 tonnes, according to government sources.
The reduction reflects the immediate impact of higher tariffs on inbound shipments, which have raised landed costs for traders and reduced near-term import demand. Market participants say the duty hike has made overseas purchases less attractive, particularly for price-sensitive segments of the bullion trade.
Gold imports typically play a significant role in India’s external trade account and domestic jewellery demand cycle. Analysts note that sudden policy changes in import duties often lead to volatility in shipment volumes as traders adjust procurement strategies and inventory levels.
Industry observers add that part of the demand may shift toward recycling of existing stock or informal channels, although official data will continue to reflect a contraction in recorded imports in the short term.
Despite the decline, underlying consumer demand for gold remains intact, supported by cultural buying patterns and seasonal demand during festivals and weddings. However, higher import costs are expected to weigh on formal import volumes unless duty structures are revised or global prices ease.
Trade experts suggest that import trends in the coming months will depend on a combination of price movements, currency fluctuations, and policy stability.