gold demand in india

The move to up the gold import duty comes days after PM Narendra Modi appeals to citizens to avoid unnecessary gold purchases for a year. But is a hike in duties an effective way to curb consumption? We take a look:

India’s gold imports hit a record $71.98 billion in 2025-26, rising over 24% from $58 billion a year earlier. This was largely due to skyrocketing global gold prices, which have bumped up the value of imported gold.

In Buxar, jewellery merchants express deep concern following Prime Minister Modi's suggestion to curtail gold purchases. They argue that such measures could jeopardize jobs and threaten the livelihood of small enterprises. Gold, they insist, holds immense cultural value and provides financial security for many rural and middle-class households.

Select Segments Post Growth Despite Overall Slowdown

In an effort to curb demand, India's finance ministry has doubled the customs duty on gold and silver to 15%, significantly increasing domestic prices. This move follows Prime Minister Modi's appeal to reduce gold purchases, as India is the world's second-largest buyer of the precious metal.

India's jewellery industry urges against curbing gold purchases, emphasizing its cultural significance as savings and tradition. Instead, they propose enhanced gold recycling and domestic mobilization to ease foreign exchange pressure. This approach aims to protect millions of livelihoods tied to the sector, from artisans to small businesses, by circulating existing gold rather than stifling demand.

Gold price prediction today: Gold and silver prices are rallying in the domestic market due to the sudden hike in import duties. In the coming days they are expected to align closer to the international prices, says Vedika Narvekar, Research Analyst - Commodities & Currencies, Anand Rathi Shares and Stock Brokers.

India holds one of the world’s largest privately owned stocks of gold. Bullion exchanges can be a strong pillar to invite that gold sitting idle in cupboards.

Prime Minister Narendra Modi's appeal to curb non-essential gold purchases has raised concerns within Odisha's jewellery industry. Jewellers argue gold is integral to traditions, and a slowdown threatens the livelihoods of artisans and goldsmiths who depend on steady demand, especially during wedding and festival seasons.

India has significantly increased import tariffs on gold and silver to 15% from 6% to curb imports and protect foreign exchange reserves. This move follows Prime Minister Modi's appeal for citizens to avoid gold purchases for a year, aiming to narrow the trade deficit and support the rupee amid global economic pressures.

India has significantly increased import duties on gold and silver to 15% from 6%, aiming to curb rising imports and conserve foreign exchange amid the West Asia crisis. This move follows Prime Minister Modi's appeal for austerity and aims to ease pressure on the rupee and the country's balance of payments.

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The PM wants us to use public transport, shift to electric vehicles, work from home, take fewer vacations abroad, and reduce gold purchases. The reason isn't as sudden as you might think

Facing a widening trade deficit, India's Prime Minister urges reduced gold purchases. Industry bodies propose tapping into the nation's vast household gold reserves. Their plan involves using refined household gold for domestic demand and channeling imported gold into jewellery exports via gold metal loans, aiming to boost working capital and cut imports.

Prime Minister Modi urged Indians to halt gold purchases for a year to protect foreign exchange reserves, a call supported by GTRI which highlighted a surge in gold imports straining the trade balance. Union Minister Ashwini Vaishnaw echoed the appeal, emphasizing reduced import spending amid Middle East conflict, leading to a sell-off in jewellery stocks.

Gems & Jewellery Artisans, Traders, Small Retailers, Machinery Manufacturers Among Those Likely To Be Hit

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