World Gold Council Urges Against Import Duty Hike on Gold in Upcoming Budget
The World Gold Council (WGC) has cautioned the government that any potential increase in import duties on gold in the 2025-26 Budget could have damaging effects on the industry. Following the government’s decision last July to reduce import duties on gold, the sector has witnessed significant positive growth, and further hikes in tariffs could reverse this progress.
Sachin Jain, Regional CEO of WGC for India, emphasized in a pre-budget note that higher import duties could lead to several negative outcomes, including an increase in gold smuggling, higher domestic gold prices, and a setback to the industry’s development. He urged that it was crucial for various stakeholders—government bodies, industry players, and financial institutions—to collaborate in maintaining the industry’s momentum.
Jain further highlighted the importance of creating a supportive environment for the gold industry to continue flourishing, innovating, and contributing to India’s economic growth. The gold sector currently accounts for around 12 percent of India’s GDP and provides employment to approximately 2-3 million people. In line with expectations for progressive, people-friendly policies, Jain expressed hope that the government would prioritize measures that support the industry’s sustainable growth and its contribution to the nation’s prosperity.
