India's Gold Demand Slumps 6% Amid Duty Hikes and Subdued Sales
India's gold demand fell 6% year-on-year to 131.4 tonnes in the second quarter of 2026, weighed down by seasonally subdued sales and higher import duty, according to a report from the World Gold Council (WGC). The decline was particularly sharp in jewellery demand, which fell 15% year-on-year to 75 tonnes.
India remained the world's largest gold jewellery market in the quarter, accounting for 27% of global demand, followed by China at 25%. Demand was supported by Akshaya Tritiya and wedding-related buying in June, but weakened from mid-May due to an inauspicious period and a 9% hike in import duty.
Unofficial gold inflows have risen since the government raised import tariffs on the precious metal earlier this year, widening margins for grey-market operators and hurting organised players. Enforcement agencies seized nearly twice as much gold between May 13 and June 30 as they did between April 1 and May 12, with seizures rising to 160.91 kg from 86.16 kg.