Gold duty hike to 15% triggers 10-15% volume drop, squeezes jeweller liquidity
India's gold import duty jump from 6% to 15% has pushed domestic bullion prices up ~10% to ₹16,500/gram, denting jewellery demand across Chennai, Bengaluru, Hyderabad, Kolkata and Ahmedabad. Jos Alukkas, NAC and Senco flag 10-15% volume decline and MSME working-capital strain, while GJEPC warns of rising smuggling risk.
What happened
footfall · India's gold import duty hike to 15% from 6% has lifted domestic prices ~10%, weakening jewellery demand across major cities, straining MSME
Key facts
- import duty raised to 15% from 6%
- domestic bullion prices up ~10%
- bank guarantees ₹28–30 lakh per kg
- gold ₹16,500 per gram (up ₹800)
- 10–15% volume decline estimated
Why this matters
MSME jeweller distress from working-capital squeeze opens a 6-12 month window for consolidation plays and distressed acquisitions in Tier-1 South/East markets where volume declines are sharpest.