Gold Imports Remain Strong Despite Sharp Duty Hike: GTRI

India’s recent increase in gold import duties has had limited impact on the country's demand for the precious metal, according to a report released by the Global Trade Research Initiative.

Trade data released on June 15 showed that gold imports remained strong despite the government's decision to raise the effective import duty on gold from 6% to 15% on May 13. The move was aimed at reducing the trade deficit, conserving foreign-exchange reserves, and supporting the rupee amid rising energy prices linked to the West Asia conflict.

Gold imports rose 24.1% to $72 billion in 2025-26 from $58 billion in the previous fiscal year.

Ahead of the duty hike, gold imports surged 81.7% year-on-year to $5.63 billion in April 2026, compared with $3.10 billion in April 2025. Even after the higher tariffs came into effect, imports increased 34% to $3.42 billion in May from $2.55 billion a year earlier.

As a result, cumulative gold imports during April-May stood at $9.04 billion, up 60.1% from $5.65 billion in the corresponding period of 2025, said GTRI.

According to GTRI, the continued strength in gold imports reflects robust jewellery demand, investor interest in safe-haven assets amid global uncertainty, and record international gold prices that have inflated the value of imports.

While the higher duties appear to have moderated the pace of import growth from 81.7% in April to 34% in May, they have not materially reduced India's appetite for gold, the report noted.