India’s gold import dynamics saw a shift in FY2025 following a sharp reduction in import duty from 15% to 6%, effective July 24, 2024. According to a report released by ICRA, official gold bullion imports rose by 8% during the year despite flat overall demand at 782 tonnes, compared to 774 tonnes in FY2024. This suggests a decline in unofficial gold inflows.

The import duty rate cut on gold from 15 per cent to 6 per cent has seemingly brought down unofficial gold imports, as evident from an increase in official gold bullion imports by 8 per cent in FY2025 despite the overall demand remaining flat (sales of 782 tonnes of gold jewellery/ bullion/ bars in FY2025 as against 774 tonnes in FY2024), according to a report released by ICRA today.

On the flip side, the sharp correction in prices after the duty cut resulted in short-term inventory loss, the rating agency said.

Duty action on gold has a considerable influence on the country’s current account position. Increasing import duties on gold can reduce gold imports and help lower the current account deficit, and vice versa.

The actions in the past largely involved revisions in import duty rates. With the introduction of the Goods and Services Tax (GST) in 2017, the overall duty/tax rate increased to 13 per cent from 12 per cent. Major action was undertaken in the Union Budget 2023, wherein the total customs duty was increased by 425 basis points. In the Union Budget 2025, total customs duty on the import of gold was reduced by 900 basis points (6 per cent from 15 per cent) with effect from July 24, 2024. For gold ore, the revised rate was 5.35 per cent (down from 14.35 per cent). The revised duty rates are the lowest in the past decade. Platinum and silver bars also witnessed a similar duty cut of 900 basis points to 6.4 per cent and 6.0 per cent, respectively.

The sharp reduction in import duty rates resulted in a decline in gold prices in the domestic market and, consequently, the landed cost. The demand of gold jewellery improved to some extent immediately after the duty cut due to reduced gold prices. However, gold prices continued to rise subsequently on the back of geo-political tensions and apprehension of tariff imposition by the US, partially offsetting the impact of the duty cut on gold prices, the ICRA report added.

At the ‘Growing Opportunities from Free Trade Agreements – An Industry Perspective’ workshop held on 24 June in Jaipur, Sabyasachi Ray, Executive Director of the Gem & Jewellery Export Promotion Council (GJEPC), highlighted the transformative potential of Free Trade Agreements (FTAs) for India’s gem and jewellery sector.

Organised by the Confederation of Indian Industry (CII) in collaboration with the Centre for WTO Studies, the event brought together industry leaders to discuss strategic trade policies and partnerships.

Sabyasachi Ray noted a major policy shift in India’s FTA strategy since 2014, focusing on high-income,

high-consumption markets like the UAE, Australia, and the UK. Citing the success of the India-UAE CEPA, he pointed out that exports nearly doubled from $2.4 billion to $4.8 billion after the agreement. He also expressed optimism about the upcoming India–UK FTA, predicting it could push jewellery exports to $1 billion.

He stressed the importance of smart FTA design, recommending targeted tariff reductions, streamlined customs procedures, and enhanced support for MSMEs to fully realise India’s export potential.

Candere, the lifestyle jewellery brand by Kalyan Jewellers known for its contemporary and trend-driven designs, has further strengthened its presence inMumbaiwith the launch of its 7th store in the city, located in Panvel, Navi Mumbai. With this addition, Candere now operates 77 stores across India, reflecting its commitment to bringing distinctive jewellery collections to a wider audience in the region.

This expansion marks a significant milestone in Candere’s retail growth journey in Mumbai and across the country, aimed at making its jewellery more accessible to customers. It also reinforces the brand’s long-term strategy of seamlessly integrating its online and offline channels to provide a unified and convenient shopping experience.

Candere is favoured for its lightweight, versatile pieces that resonate with Gen Z, working professionals, and style-conscious men. The brand focuses on offering modern, trend-forward designs at accessible price points—starting from ₹10,000—allowing customers to express their individual style with ease. These collections are also perfect for thoughtful gifting and celebrating special occasions.

To celebrate the new store opening, Candere is offering exclusive offers: Flat 20% off on Diamond & Solitaire stone prices and flat 25% off on making changes for gold and platinum jewellery.

Evolving from a digital-first brand to a strong omni-channel retailer, Candere continues to offer a smooth and engaging shopping experience both online and in-store. Backed by the legacy and trust of Kalyan Jewellers, the brand is steadily expanding, offering jewellery that does more than just beautify—it tells a story of individuality and style.

With the opening of its latest showroom in Panvel, Navi Mumbai, Candere reaffirms its promise to design jewellery that resonates with evolving customer preferences and celebrates life’s memorable moments.