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Gold Demand In India Sees Sharp Decline After Import Duty Hike

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Gold demand in India has plummeted approximately 70% following the government’s decision to more than double the import duty on gold from 6% to 15%, effective May 13, 2026. Demand fell to about 7.5 tonnes in the fortnight ended May 27, 2026, compared to around 25 tonnes a year earlier.

Prime Minister Narendra Modi’s public appeal to citizens to curb gold consumption and higher fuel and food prices due to Iran war tensions have weakened overall consumer sentiment.

World Gold Council projects India’s total gold demand will contract by 50-60 tonnes (approximately 10%) in calendar year 2026.

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BIS Introduces The Silver Refinery Certification Scheme; Framework Introduces “India Good Delivery For Silver”

Buyers, Institutional Investors, and Jewelers Are Guaranteed Strict Adherence To Exact Quality, Testing, and Traceability Standards. Silver From Any BIS-Approved Refinery Ensures A Verified Fineness and Purity

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The Bureau of Indian Standards (BIS) has officially prioritized the domestic bullion sector by introducing the Silver Refinery Certification Scheme, that involved critical inputs and efforts by IBJA.


Mirroring the long-established certification ecosystem for gold, this framework introduces a structured “India Good Delivery for Silver” standard specifically tailored for silver bars and coins.


Buyers, institutional investors, and jewelers are guaranteed strict adherence to exact quality, testing, and traceability standards. Silver from any BIS-approved refinery ensures a verified fineness and purity.


Surendra Mehta, National Secretary- IBJA, said:

“BIS is introducing the Silver Refinery Certification Scheme, an initiative that involved critical inputs and efforts by IBJA. Mirroring the long-established certification ecosystem for gold, this framework introduces a structured India Good Delivery for Silver. Now, silver from any BIS-approved refinery ensures a verified fineness and purity. This will gradually end the impure silver bar market.”

Market structures have already evolved alongside this rollout. The Multi Commodity Exchange (MCX) aligned its exchange delivery protocols to accept BIS-standard domestic silver, allowing empanelled Indian refiners to fulfill physical delivery contracts directly on the exchange.

By formalizing the local refining of silver (including silver recovered as a by-product of gold dore), this scheme strengthens the domestic precious metals ecosystem in line with Aatmanirbhar Bharat objectives

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