India’s Gold Imports Decline Sharply After Duty Hike, Fall to 25-30 Tonnes a Month

India's monthly gold imports have dropped to around 25-30 tonnes from the earlier 70-100 tonnes after the government raised the effective import duty to 15%, as per ANI reports.  

The higher duty, announced on May 13, 2026, was introduced to curb non-essential imports and reduce pressure on the country's import bill and foreign exchange reserves. 

The decline is also visible in trade data. Gold imports fell from around $5.63 billion in April 2026 to about $3.42 billion in May 2026, following the change in duty. 

Demand Weakens as Prices Stay High 

Officials said the lower import volumes are not only because of the duty increase. Gold prices have remained elevated, affecting jewellery purchases across the market. Changing demand patterns have also contributed to the slowdown in imports. 

The source added that gold recycling has picked up globally. Jewellery that was earlier kept as savings is now being recycled more often, reducing the need for fresh imports. 

Fewer Official Import Channels 

Imports through nominated agencies have also declined this year. From April 1, authorised dealer banks were not renewed as designated importers, leaving only 3 nominated agencies, including MMTC, eligible to bring gold into the country. 

The government also said previous gold monetisation schemes did not attract wide participation as many holders were reluctant to disclose the source of their gold while depositing it under the scheme. 

Read More: Government Announces Fresh Appointments and Reappointments Across Insurance Sector! 

Conclusion 

The government's higher import duty, along with weaker jewellery demand and increased recycling, has contributed to a sharp decline in monthly gold imports. Official import volumes have remained significantly lower since the policy change. 

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