India's Gold Import Decline Sparks Mixed Reactions from Kotak Institutional Equities

Kotak Institutional Equities has observed a sharp decline in India's official monthly gold imports since May 2026. Despite stable domestic gold prices since February, the value of these imports has dropped significantly.

The brokerage firm noted that the decrease may be due to several factors, including higher import duties on gold, which have increased domestic prices by 9% compared to global prices.

Kotak Institutional Equities believes that the decline could be 'good' if it represents a permanent reset in household demand for gold. However, if it's a temporary pause or diversion of imports to unofficial channels, the situation may be 'bad' or even 'ugly.'