India’s gold and jewelry ecosystem is entering a pivotal phase, shaped by strong structural demand, rapid formalization, and evolving policy dynamics. While elevated gold prices have raised affordability concerns, demand resilience and a shift in consumer behavior continue to reinforce the sector’s long-term relevance.
The recent increase in the effective tax burden on gold imports to nearly 18% has introduced a fresh layer of uncertainty for the sector. While the move is intended to manage external balances and regulate precious metal imports, it may temporarily widen the arbitrage between formal and unofficial channels. However, the industry’s formalization journey over the past decade provides a stronger foundation than in prior cycles, potentially limiting the extent of disruption.
