India's Jewellery Council Flags Higher Duties and Gold Monetisation Reforms

A new report from the All India Gem & Jewellery Domestic Council (GJC) underscores the impact of the May 2026 customs duty hike on domestic gold prices. The increase has already pushed retail rates higher, tightening margins for retailers already coping with GST obligations.

The council argues that rationalising these taxes is essential for sustaining demand, especially as consumer preferences shift toward lighter, more affordable pieces.

Simultaneously, the industry is pressing for amendments to the Gold Monetisation Scheme. Revised rules could enable households to convert dormant gold into liquid assets, thereby lowering import dependence and strengthening the internal supply chain.

Gold’s price trajectory this year featured a high of ₹1,70,480 per 10 grams in January, followed by a decline to about ₹1,42,800 by June. Silver mirrored this pattern, dropping from over ₹4,02,490 per kilogram to near ₹2,25,940.

Despite the price correction, the market remains buoyant due to India’s deep cultural attachment to gold and the expected surge in demand during the festive and wedding seasons later in the year.

Chairman Rajesh Rokde highlighted that lightweight jewellery will likely see robust sales, driven by both fashion trends and budget considerations. He reaffirmed the council’s call for a streamlined tax framework and an updated Gold Monetisation Scheme to support the sector’s long‑term health.