WGC: India gold demand to drop 50-60 tonnes in 2026 after import duty hike to 15%

World Gold Council forecasts a ~10% YoY contraction in India's gold demand in 2026 as the import duty jump from 6% to 15% squeezes jewellery and investment buying. WGC warns the move could revive smuggling, citing post-2013 unofficial imports surging from 10 to 70 tonnes.

— Source publishedFri, 22 May, 2026, 19:58 IST·First seen Fri, 22 May, 2026, 20:24 IST·Source ET Small Business

What happened

World Gold Council · WGC forecasts India's gold demand will contract 50-60 tonnes (~10%) in 2026 after import duty was hiked from 6% to 15%, hitting jewellery

Key facts

  • 50-60 tonnes decline
  • 10% YoY drop
  • import duty hiked from 6% to 15%
  • unofficial imports rose from 10 to 70 tonnes post-2013 hike

Why this matters

Distressed independent jewellers and regional chains become acquisition targets as the duty shock accelerates consolidation—scout for tuck-ins while valuations reset on the demand contraction narrative.