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WGC India Gold Market Update: Import Tightening

Part Of A Broader Push To Conserve Foreign Exchange Reserves Amid Geopolitical Uncertainty and Mounting Pressure On The INR

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Highlights 

  • Gold import duty was raised sharply by 9%– from 6% to 15%, the steepest increase on record – alongside broader regulatory tightening
  • Domestic gold prices have not yet fully reflected the duty hike amid weak demand and ample supply; local markets are currently in deep discount from the landed price
  • Past trends indicate that higher duty increases unofficial inflows, although official imports remain relatively resilient
  • Gold demand is expected to moderate in 2026, with jewellery and bar and coin demand projected to decline by 50–60t (~10% y/y) on account of the import duty hike.

Policy actions on gold imports

Since early April, the government has adopted a series of measures aimed at moderating gold imports. These have been part of a broader push to conserve foreign exchange reserves amid geopolitical uncertainty and mounting pressure on the INR, which has depreciated by more than 7% y-t-d. These measures include price-based actions, administrative and regulatory tightening, and consumer-directed messaging. While noteworthy, they are not unprecedented; gold is among the top five imports for India, accounting for 8% of the country’s merchandise imports in 2025, and similar measures have been utilised in the past.

On the price front, the gold import duty was raised sharply from 6% to 15%, making it the single largest increase on record and fully reversing the duty cut of July 2024. Rules were also tightened for gold imports linked to exports (under the advance authorisation scheme), and the Prime Minister has directly appealed to consumers, urging them to avoid buying gold for a year.

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National News

Mahesh Notandass and Vandals Partner with Rohit Gandhi + Rahul Khanna for Noir Botanica

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Mahesh Notandass and Vandals served as the official jewellery partners for designer duo Rohit Gandhi + Rahul Khanna’s Noir Botanica presentation, held at Galeries Lafayette Mumbai on August 20.

Jewellery from both houses was worn by Rohit Gandhi and Rahul Khanna, as well as models walking the presentation, complementing the collection’s sculptural silhouettes, metallic surfaces and architectural detailing.

Rather than a conventional runway, the evening was conceived as an immersive fashion experience. Galeries Lafayette Mumbai was transformed into an intimate setting inspired by jazz and the glamour of 1930s evening culture, allowing guests to experience the craftsmanship, textures and construction of the garments up close. Actor Vijay Varma closed the presentation, adding a striking finale to the evening.

The event drew a notable gathering of celebrities and fashion personalities, including Kajol, Babil Khan, Mahima Makwana, Pragya Jaiswal, Gurfateh Pirzada, Sophie Choudhry, Sarah-Jane Dias, Shalini Passi, Zayed Khan and Ruhee Dosani, among others.

Vandana M. Jagwani, Creative Director at Mahesh Notandass and Founder of Vandals, graced the occasion, marking the coming together of the two jewellery houses with Rohit Gandhi + Rahul Khanna for the Noir Botanica presentation.

The collaboration highlights the growing intersection of fine jewellery and contemporary fashion, with Mahesh Notandass and Vandals bringing their distinct jewellery aesthetics to a collection centred on strong silhouettes, craftsmanship, texture and modern evening dressing.

The Noir Botanica capsule will be available following the presentation at Rohit Gandhi + Rahul Khanna stores and Galeries Lafayette Mumbai.

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