Gold Duty Cut Spurs Official Imports, Curbs Unofficial Channels

The import duty rate cut on gold from 15 percent to 6 percent has seemingly brought down unofficial gold imports, as evident from an increase in official gold bullion imports by 08 percent in FY2025 despite the overall demand remaining flat (sales of 782 tonnes of gold jewellery/ bullion/ bars in FY2025 as against 774 tonnes in FY2024), according to a report released by ICRA today. On the flip side, the sharp correction in prices after the duty cut resulted in short-term inventory loss, said the rating agency.

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