Indian Gold Demand Defies Duty Hike to Reach Record High

India's gold imports reached an all-time high of Rs1.98 trillion in Q2 2026, despite a significant increase in import duty from 6% to 15% on May 13, 2026.

The World Gold Council notes that the duty hike was part of broader regulatory tightening aimed at curbing imports. However, customs collections between May 13 and early August confirm that trade merely repriced rather than retreated.

The Reserve Bank of India adds gold to its reserves as a dollar hedge, mirroring central banks from Warsaw to Dar es Salaam. This has led to an increase in demand for African-produced gold, with Tanzania's gold exports jumping 37.4% to a record 4.7 billion dollars in 2025.