JB Insights
India Raises Gold, Silver Import Duty To 15% To Curb Soaring Precious Metal Import Bills and Conserve Forex
Higher Duties Could Increase Prices, Impact Exports, and Create Liquidity Pressure For MSME Manufacturers Due To Rising Working Capital Requirements
#JbExclusive
The Finance Ministry on Wednesday raised effective import duty on gold and silver from 6% to 15% — comprising 10% basic customs duty and 5% agriculture infrastructure and development cess (AIDC) — effective 13 May 2026. The move aims to curb soaring precious metal import bills and conserve foreign exchange reserves as the West Asia crisis intensifies pressure on India’s trade balance.
Markets reacted swiftly. Titan fell as much as 1.5% on the day, extending a prior two-session decline of over 10%, while Kalyan Jewellers dropped as much as 5.9%. Gold and silver ETFs rallied sharply on expectations of higher domestic bullion prices. WGC data implies the 9-percentage-point hike could suppress annual consumer demand by roughly 57 tonnes — based on an estimate of 6.4 tonnes of demand suppression per 1% duty rise.
● Industry Voices
“Higher duties could revive gold smuggling, which had eased substantially after the 2024 duty reduction. Every 1% rise in import duty reduces consumer demand by approximately 6.4 tonnes — implying the hike could suppress demand by ~57 tonnes annually.”
Prithviraj Kothari, MD, RiddiSiddhi Bullions | National President, IBJA Bullions | Chairman, JITO

“Higher duties could increase prices, impact exports, and create liquidity pressure for MSME manufacturers due to rising working capital requirements. We urge continued dialogue for balanced solutions that support both economic goals and export growth.”
Kirit Bhansali Chairman, GJEPC
“The increase in customs duty is a temporary and calibrated measure in the present economic scenario. The trade should remain calm and confident — India’s jewellery sector has always demonstrated resilience and adaptability during challenging times.”

Rajesh Rokde Chairman, GJC

“It is important for the trade fraternity to avoid panic and continue business with confidence and responsibility. GJC fully supports the nation’s larger economic priorities and remains committed to constructive engagement with policymakers.”
Avinash Gupta Vice Chairman, GJC
“Due to the simultaneous occurrence of two events—the sudden 9% hike in import duty and statements made by PM Modi—both the jewelry industry and customers find themselves in a state of confusion. This is significantly impacting jewellers, artisans, and large factories alike.

My suggestion to everyone is to remain patient and avoid panicking. Everyone should avoid protests, shop closures, or any form of aggression. Once the government’s complete process is revealed, we can then consider all options through dialogue and discussion.”
Anurag Rastogi, North India Head – IBJA

“Business is already at nearly 50% of normal levels, and the duty increase will reduce consumption volumes further. Promoting lower caratage jewellery — 9ct, 14ct, 18ct — could make products more affordable and reduce gold usage. As an industry, we must stand with the government during this period.”
K. Srinivasan, CMD, Emerald Group
“An increase in import duty on gold typically has a direct impact on retail prices, influencing short-term consumer sentiment — especially for price-sensitive buyers. In the immediate phase, some customers may postpone discretionary purchases or wait for price stability. It can lead to a 10–15% volume decline to help control gold inflows into the country.

However, gold buying in India is deeply linked to weddings, festivals, and long-term wealth preservation, so demand is usually resilient over time.”
Suvankar Sen, MD & CEO, Senco Gold and Diamonds

“Changes in import duties on gold and silver are part of an evolving policy landscape, and the industry has consistently adapted with resilience and stability. We respect the government’s decision and recognize the broader economic considerations behind such measures.
Over the years, gold import duty has moved from 15% to 6% and now back to 15%. However, gold prices have never been driven by changes in duty alone. Global trends, rupee depreciation, and consumer demand remain key factors, while recent revisions reflect an already elevated domestic gold price environment.”
Chetan Thadeshwar, CMD – Shringar House Of Mangalsutra Ltd
“At SwarnShilp, we believe any duty increase is a reminder for the industry to become faster, more efficient, and more design-driven. Our focus remains on strong inventory planning, lightweight innovation, and timely delivery to support our customers despite market volatility.”

Surabi Karthik, President — South India Bullion Association, Secretary— Gold Bullion Association, Coimbatore

The customs duty on gold has gone up from 6% to 15%. This is not a punishment for our trade. Our Prime Minister is trying to protect India’s foreign exchange in a tough global situation — war tensions, Strait of Hormuz disruption, and rising import costs.
But we have a solution from within. India’s households hold 25,000 tonnes of gold sitting idle in lockers. Let us recycle this gold instead of importing more. Instead of borrowing working capital from foreign lenders, let us use India’s own gold through the Gold Monetization Scheme — and pay interest to our own people, not foreigners. This way, we can bring imports down from 700 tonnes to 500 tonnes — saving billions for our nation.
We are 2 crore people in this trade. We are not a burden — we are nation builders. Let us lead with pride and stand by our country in this hour. Together, we can solve this — the Indian way.
N Ananthapadmanabhan, MD, NAC Jewellers
The government’s decision to raise gold import duty from 6% to 15% is unfortunate, especially when closer to 30,000 tonnes of gold remain idle in Indian households. At GJC, we have long urged stronger implementation of the Gold Monetization Scheme by appointing jewellers as collection and mobilization agents, since they can connect with consumers more effectively than banks.

We have also proposed allowing every Indian woman to bring in up to 500 grams of gold without extensive KYC. These steps could unlock 2,000–3,000 tonnes, cut import dependence, and ease forex pressure.
The hike will impact sales in the short run, but in the long run, people have to buy for the weddings, so its impact will be minimal. This hike will encourage gold to come in unofficially to a great extent, which is detrimental, and will encourage hawala transactions to a great extent, contributing to a rise in tension in our country.
Shreyans Kothari, Gen. Secretary MWGJA

“While we support the government’s vision to strengthen the economy and manage imports, it is equally important to safeguard the interests of the jewellery industry, which supports millions of livelihoods across the country. A balanced and practical approach will help both the nation and the trade grow together.”
Khushboo Ranawat, Director – SwarnShilp Chains & Jewellers Pvt Ltd
● Industry Proposals
Lower caratage push
Promote 9K, 14K & 18K jewellery to cut gold consumption and keep prices within reach

Revamp GMS
Overhaul the Gold Monetization Scheme through jeweller networks to mobilize idle household gold
Old Gold Exchange
Scale consumer recycling programmes to reduce dependency on fresh bullion imports
● Risks to watch out for
● Dubai/CEPA arbitrage — GTRI warns that the India–UAE CEPA could make UAE-routed imports cheaper, partially neutralizing the duty’s intent
● Smuggling revival — duty spikes above 10% have historically correlated with the resurgence of grey-market gold flows into India
● Export competitiveness — higher landed costs raise working capital requirements for MSME exporters and could weigh on jewellery export volumes
– Raghav Dhir, Founder & MD, Dhirsons Jewellers, Dhiraj Dhir Group, Lajpat Nagar

“The revision in import duty is a significant policy shift, and while it will inevitably push up costs across the supply chain, it also presents a timely opportunity for consumers to rethink how they engage with gold. We strongly encourage our customers to bring in their old gold and exchange it for new jewellery.
This is one of the smartest ways to stay ahead of rising prices while refreshing your collection. At the same time, we believe this is the right moment for the industry and the government to come together and formalize a robust gold monetization scheme. India holds an estimated 25,000 tonnes of gold sitting idle in homes. Unlocking even a fraction of that through a credible, consumer-friendly programme would reduce our dependence on imports, ease forex pressure, and fuel domestic trade in a meaningful way. The policy intent is clear; what we need now is a structured mechanism that gives consumers the confidence to participate.”
JB Insights
From Gold to Experience: How Jewellery Retail Is Evolving into Lifestyle
Anil Jose, Managing Director, TT Devassy Jewellery
Changing consumer preferences are transforming jewellery retail, with experience-led showrooms, everyday wear and personal expression redefining how brands connect with customers
For generations, buying jewellery in India has been entangled with occasions. Weddings, festivals, anniversaries and family milestones have traditionally shaped when and why people purchase jewellery. Gold, in particular, has a unique place in Indian households, representing not just beauty but also security, tradition and long-term value.
That relationship remains strong. What is changing is the role jewellery plays in everyday life. Consumers are increasingly buying jewellery not only to mark an occasion, but also to express their personality, complement an outfit, celebrate a personal achievement or simply enjoy something they connect with.
For jewellery retailers, this represents a significant shift.
Jewellery Showroom as an Experience
The modern jewellery customer journey is becoming more experiential. A customer may discover a design on social media, explore collections online, compare options and then visit a store to experience the product in person. The showroom is therefore no longer simply a place to display products; it has become an important part of the brand experience.
This is also reflected in the expansion of organised jewellery retail in India. As per a research, jewellery’s share of organised retail leasing in India rose from 2% in 2019 to 8% in 2025, making it one of the country’s top three retail demand drivers. At the same time, larger, experience-led formats are gaining ground, with stores exceeding 8,000 sq. ft. accounting for half of jewellery retail leasing in 2025, compared with 14% in 2019.
The implication is simple: a jewellery store can no longer be just a place where products are displayed. It needs to be a place where customers discover, explore and connect with a brand.
From ownership to self-expression
Traditionally, jewellery was often purchased with a long-term perspective. It was an asset, an heirloom and something intended to be passed down through generations.
Those motivations remain important, but a new layer is emerging; personal expression. Younger customers are increasingly drawn to lightweight, versatile and contemporary pieces that can reflect their individual style and be worn across occasions.




Building a jewellery wardrobe
In many ways, jewellery is beginning to develop its own version of a wardrobe. There are traditional pieces for weddings and festivals, minimalist designs for everyday wear and statement pieces for celebrations.
This creates an opportunity for retailers to move beyond individual transactions and become part of more moments in a customer’s life. When jewellery becomes relevant to more occasions, it naturally becomes less occasional and more habitual.
Trust remains timeless
For all the changes in jewellery retail, one factor remains constant, trust.
Transparency in pricing, confidence in quality and dependable after-sales service continue to shape customer relationships. Today, that trust extends to every part of the brand experience, from digital communication to the showroom itself.
Jewellery has always been about more than gold and precious stones. It represents relationships, memories, celebrations and identity. What is changing is how frequently and personally consumers choose to express those emotions through jewellery.
The opportunity for retailers is to evolve from occasion-driven sellers into lifestyle brands; brands that understand how customers live, what they value and how jewellery fits into their everyday stories.
Gold may remain timeless. But the experience surrounding it is becoming the real differentiator.
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