New Delhi, June 19: India’s gold imports declined sharply by 39 per cent in May following an increase in import duty, according to data cited by the World Gold Council (WGC). The decline reflects weaker domestic demand amid higher prices and policy changes in the bullion market.
The report also noted that gold exchange-traded funds (ETFs) recorded their first net outflows in over a year, indicating a shift in investor sentiment and reduced investment demand during the month.
The fall in imports is largely attributed to higher landed costs after the duty hike, which pushed up domestic prices and led to cautious buying from jewellers and consumers.
Gold ETFs, which had seen steady inflows in recent months, witnessed outflows in May, driven by profit booking and price volatility in global and domestic markets.
Despite the monthly decline, the WGC stated that long-term demand for gold remains supported by cultural buying patterns, portfolio diversification needs, and global economic uncertainty. However, near-term demand trends are expected to remain sensitive to policy changes and price movements.
