India Hikes Gold Import Duty From 10% To 15%, Foreign Suppliers Beware

18 July 2022

India raised the value of import duties on the imports of gold in the country recently. The import duties on the gold imports in India were increased from 10% to 15%, in order to curb the imports. This has brought a hike in gold prices in the country and foreign suppliers are expected to suffer a loss, associated with the country to export. We will see which countries will suffer the highest loss, and did gold imports in India increase?

India Gold Imports – Quarterly

Imports of gold in India will rise in the country is what the government feared, and announced the hike. But does imports have really risen in the past few months? The below-shown data represents the gold imports in India as per quarterly trends.

The value of imports for gold in India, before COVID-19, in Q1-2020 amounted to $3.8 billion. In the second quarter of 2020, the value drastically decreased. The values continuously increased till Q2-2021 and dipped in Q2-2021. From Q3-2021 till the last quarter of 2021, values grew.

India Gold Imports – By Country

India gold imports account the highest from Switzerland as per the table below with a share value of 48.3%. UAE accounts for a share value of 11.8%, followed by South Africa and Guinea – the African countries, accounting for share values of 10.1% and 5.7% respectively.

There are other countries in the table that features an insight into the import markets of India for gold. However, it can be clearly seen that Switzerland might be at a high risk of loss, as it alone accounts for almost half of the gold imports in India.

India Gold Imports In 2022 So Far

India gold demand in the year 2022 can be evaluated from the table below. The imported value of gold in India is rising from January to March when it declined drastically. In the next following months till the end of the table, the values have risen considerably.

The price of gold in India has reached nearly INR 54,000 per gram. Not only do the partner countries have the fear of loss for gold in India now, the local jewellers are fearing too. Many domestic jewellers claim that this will affect their sales on a high scale.