BS EDIT: Why higher gold duties may not fix India’s import challenge

By Business StandardPublished On May 15, 2026

Import Pressure

Gold imports reached nearly $72 billion in FY26, adding stress to India’s external balance

Demand Drivers

Cultural habits, savings needs and financial insecurity continue to sustain gold demand in India

Global Price Effect

Gold prices rose nearly 50% in FY26, making global trends more influential than higher duties

Smuggling Risks

Higher import duties could once again encourage illegal gold inflows into the country

UAE Advantage

Lower tariffs under the India-UAE trade pact may redirect more gold imports through the UAE

Long-Term Fix

Better financial inclusion and stronger returns for savers can gradually reduce gold dependence