India gold demand stays subdued as 15% duty hike, price swings keep buyers and jewellers on sidelines

Indian jewellers are quoting discounts of up to $78/oz on gold this week, narrower than the prior $207/oz gap, as retail buyers defer purchases following the import duty hike to 15% plus a 3% levy. Wedding-season tailwinds have faded and restocking remains weak. China premiums also eased to $10-$20/oz.

— Source publishedFri, 22 May, 2026, 12:03 IST·First seen Fri, 22 May, 2026, 12:18 IST·Source The Hindu BusinessLine

What happened

India gold jewellery trade · Indian gold demand stays subdued with jewellers quoting up to $78/oz discounts after the government hiked import duty to 15%.

Key facts

  • $78/oz discount
  • $207/oz prior discount
  • 15% import duty
  • 3% sales levy
  • duty raised from 6% to 15%
  • China premiums $10-$20/oz

Why this matters

Persistent demand weakness and margin compression from the 15% duty create a window to evaluate distressed regional jeweller targets or import-channel partnerships before any policy reversal re-rates the sector.