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India gold tariff hike boosts grey market, hurts organised trade: WGC
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BusinessIndia, the world's biggest gold consumer after China, more than doubled import tariffs to 15% on May 13 to curb demand, cut the trade deficit and ease pressure on the rupee.
File photo: Saleswomen show gold ornaments and jewellery to customers for purchase inside a Senco Gold & Diamonds jewellery showroom in Kolkata, India.
India, the world's biggest gold consumer after China, more than doubled import tariffs to 15% on May 13 to curb demand, cut the trade deficit and ease pressure on the rupee.
The recent resurgence in the grey market suggests illegal imports could exceed 100 tons in 2026, industry officials told Reuters last month.
Gold demand in the June quarter declined 6% from a year earlier to 131.4 tons, as falling jewellery purchases outweighed strong investment demand, the report said.