The World Gold Council (WGC) has voiced concerns over the potential increase in gold import duties ahead of the Union Budget 2025, cautioning that such a move could disrupt the market and harm the industry’s growth trajectory.  

The reduction in gold import duties announced in July 2024 had a transformative impact, curbing informal imports, stabilizing official supply channels, and promoting a more transparent market. The WGC warns that reversing this decision could lead to a resurgence of gold smuggling, inflate domestic gold prices, and stifle sector growth.  

Sachin Jain, Regional CEO of WGC India, highlighted the risks of a duty hike. "Maintaining the current customs duty is essential for market stability and growth. An increase would undo the progress made and negatively affect a sector that contributes around 1.3% to India’s GDP and supports employment for 20 to 30 lakh people," he said.  

Jain urged collaboration among the government, financial institutions, and industry players to sustain the positive momentum and foster a conducive environment for the gold sector to thrive.  

As India faces weak GDP growth and declining consumption, industry stakeholders are eagerly awaiting the Budget 2025 announcement on February 1. The WGC hopes the government will adopt measures that encourage economic growth while safeguarding the interests of the gold industry, including maintaining a favourable duty structure.