Kotak Cuts India Gold Imports Forecast Amid Higher Prices and Duties

Kotak Institutional Equities has revised its forecast for India's gold imports downwards to US$88 billion by the end of FY2027, citing rising gold prices and increased import duty as major factors affecting demand.

The report suggests that the recent hike in gold import duty from 6% to 15% has led to a decline in gold purchases in the domestic market. Additionally, record gold prices combined with double-digit increases in import duties have pushed up gold prices in the domestic market.

Gold imports in May also witnessed a fall, and analysts believe that there is an element of risk of a decrease depending on the trend observed during the initial months of FY2027. However, they also anticipate some improvement owing to the festive season.