Higher customs duty pushes India's gold discount to nearly ₹462
Gold in India is trading at a discount of over ₹450 per gram to landed prices after the government raised customs duty on gold, silver, and platinum from 6% to 15%.
The hike, which kicked in on May 13, 2026 to curb imports and save foreign exchange, has pushed domestic gold discounts to nearly ₹462 per gram, way up from before.
India's gold demand may spur smuggling
With Prime Minister Modi asking people to hold off on buying gold and higher prices at play, demand has taken a hit.
Big jewelry chains are still getting by thanks to wedding season sales, but smaller shops are struggling with fewer buyers and shrinking profits.
The World Gold Council estimates that combined jewelry and bar-and-coin demand could fall by about 10% in 2026, or by 50-60 tons, versus 2025, possibly more smuggling as people look for cheaper ways to buy.