Duty hike to 15% and austerity push reroutes Indian gold demand from jewellers to ETFs
Government's import duty hike from 6% to 15% and PM's austerity appeal are accelerating a shift from physical jewellery to Gold ETFs. January 2026 ETF inflows hit Rs 24,000 cr, investment volumes up 54% YoY to 82 tonnes, while MCX gold surged 81% YoY. Jewellery retailers face margin and footfall pressure.
What happened
Indian Gold & Jewellery Sector · Government's gold import duty hike to 15% and PM's austerity appeal may push Indian consumers from physical gold and jewellery
Key facts
- import duty 15% from 6%
- FY26 gold imports $71.98B
- +24% YoY
- investment volumes +54% YoY to 82 tonnes
- jewellery demand 66 tonnes
- MCX gold +81% YoY to Rs 151,108/10gm
- Jan 2026 ETF inflows Rs 24,000 cr
- India ~1/3 of global ETF demand Q1 2026
- re-exports 38% of imports
Why this matters
Scout bolt-on acquisitions of digital gold platforms or ETF distribution partnerships to hedge physical jewellery exposure before the investment-vs-adornment split widens further.