India gold demand crashes 70% after duty hike to 15%
Fortnightly gold offtake collapsed to 7.5 tonnes from 25 tonnes after import duty jumped from 6% to 15%, lifting effective tax to 18.45%. Joyalukkas reports 35% sales drop; bar/coin demand bucks trend at +34% to 62.3 tonnes as prices hit ₹1.57 lakh/10g. Smaller jewellers hit hardest.
What happened
India Bullion and Jewellers Association (IBJA) · Gold demand in India slumped 70% to 7.5 tonnes in the fortnight after duty hike from 6% to 15%. Joyalukkas
Key facts
- 70% demand drop
- 7.5 tonnes vs 25 tonnes
- import duty 15% from 6%
- effective tax 18.45% from 9.18%
- Joyalukkas -35%
- bar/coin demand +34% to 62.3 tonnes
- gold ₹1.57 lakh/10g
Why this matters
Smaller jewellers absorbing the brunt of the 15% duty hike create a window for distressed M&A and regional consolidation at attractive multiples over the next 2-3 quarters.