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.

GIVA, one of India’s fastest-growing D2C fine jewellery brands, has raised ₹530 Cr in its latest funding round. Creaegis, a leading growth stage investment firm, led the round, with participation from existing investors Premji Invest, Epiq Capital, and Edelweiss Discovery Fund.

The capital will be used to scale GIVA’s retail and digital footprint, enhance tech-enabled supply chain capabilities, deepen its offerings in lab-grown diamond jewellery and expand into new categories.

Started in 2019 by Ishendra Agarwal and Nikita Prasad, GIVA began its journey with 925 sterling silver jewellery and has since diversified into 14K/18K gold and lab-grown diamond jewellery. The company has established itself as a clear market leader in the fine jewellery space in response to a growing demand for affordable luxury and sustainable alternatives.

Announcing the development, Ishendra Agarwal, Founder, GIVA, said, “Welcoming Creaegis as a lead investor in this round marks an important step in our growth journey. Their deep expertise in building digital-first, consumer-centric businesses makes them an ideal partner for GIVA as we scale our omni-channel presence and strengthen our capabilities across product, technology, and operations. With the continued support of our existing investors, we’re focused on elevating the fine jewellery experience for modern Indian consumers and accelerating our journey towards market leadership.”

Founded with the mission to make high-quality jewellery more accessible, GIVA has rapidly scaled with a product portfolio spanning silver, gold, and lab-grown diamond jewellery. With its in-house design excellence, commitment to authenticity, and a growing offline presence, GIVA is uniquely positioned at the intersection of aspiration, trust, and modern design.

Today, the brand retails through 240+ physical stores across India. Riding on this momentum, GIVA plans to open 145–150 additional stores this year, with a strong focus on Tier II cities, where it continues to witness robust demand.

This rapid growth is driven by a strong leadership team. In recognition of the instrumental role played in shaping the company’s journey, Aditya Labroo, Chief Operating Officer has now been elevated to the role of co-founder, further strengthening GIVA’s vision for the future.