Gold imports slide after India lifts effective duty to 15%, easing CAD pressure

Government officials say gold inbound shipments have dropped since the May duty hike, with BCD raised from 5% to 10% and AIDC from 1% to 5%, taking total effective import duty from 6% to 15%. Further demand cooling is expected to help contain the current account deficit near 0.6% of GDP through FY26-FY27 despite elevated crude.

— FiledWed, 10 Jun, 2026, 23:04 IST·First seen Wed, 10 Jun, 2026, 23:03 IST·Source Moneycontrol · Results

What happened

Government of India · India's gold imports have declined following a hike in total effective import duty from 6% to 15%, government officials said. Further

Key facts

  • import duty 6% to 15%
  • BCD 5% to 10%
  • AIDC 1% to 5%
  • CAD 0.6% of GDP

Why this matters

Watch for accelerated consolidation among smaller jewelers squeezed by the 15% duty regime, opening targeted M&A windows in organized gold retail and recycling/refining adjacencies.

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