WGC Warns Against Potential Increase in Gold Import Duty in Upcoming Budget

New Delhi: The World Gold Council (WGC) has expressed concerns that any hike in gold import duties in the forthcoming Budget could negatively impact the industry. The reduction in import duties last July brought significant benefits, and an increase may reverse those gains, warned the council.

In anticipation of the 2025-26 Budget, Sachin Jain, Regional CEO, India, WGC, emphasized the potential drawbacks of higher tariffs. He stated, “Any increase in import duties in the upcoming budget could have adverse effects, possibly leading to a rise in smuggling, higher domestic gold prices, and setbacks for the industry.”

Jain further highlighted the importance of collaboration between stakeholders, including government bodies, industry leaders, and financial institutions, to sustain the current positive momentum. “By fostering a cooperative environment, we can ensure the gold sector continues to thrive, innovate, and significantly contribute to India’s economic growth,” he added in a pre-budget note.

Looking ahead to the budget, Jain expressed hopes for progressive, consumer-friendly, and industry-supportive policies, in line with previous years.

The gold industry plays a crucial role in India’s economy, contributing an estimated 1.3 percent to the GDP and providing employment to approximately 2-3 million people.

In the 2024 Budget, announced in July, the total customs duty on gold was reduced from 15 percent to 6 percent. According to the WGC, this policy adjustment led to a decline in unofficial imports, strengthened official trade channels, and boosted domestic gold purchases. The lower tax structure has fostered a more organized and transparent industry, reinforcing the gold market’s stability.

Meanwhile, the upcoming budget session of Parliament is set to commence on January 31 and will conclude on April 4. The Union Budget will be presented on February 1, while the Economic Survey for 2024-25 will be tabled a day earlier.

With economic challenges such as weak GDP figures and subdued consumption patterns, stakeholders are keenly awaiting key policy announcements and the government’s strategic economic roadmap for the remainder of the Modi 3.0 administration.

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