Indian gold traders discuss market changes in a dimly lit shop.
New Delhi, India – The Indian gems and jewellery sector is bracing for potential headwinds following a significant increase in the gold import duty to 15 percent. The Gems and Jewellery Council (GJC) has expressed concerns that this policy shift could stimulate the grey market and encourage smuggling, posing a challenge to legitimate trade operations.
Industry leaders are reportedly planning to convene to discuss the ramifications of the duty hike and strategize potential responses. The move comes as the government seeks to manage macroeconomic conditions, but its impact on a key consumer and export-oriented sector is a growing concern.
Consumers may also adjust their purchasing habits in response to the higher costs, with a potential shift towards lighter gold jewellery. The GJC’s outlook suggests that the increased duty could disrupt established market dynamics and potentially lead to a less transparent trading environment for gold.
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