Budget 2026: India Eyes Gold Customs Duty Cuts, Simplified Tariffs for Global Market Influence

• India's gold holdings, nearly $4 trillion, are almost equal to its GDP, highlighting gold's significant economic and cultural role.
• Past gold policies aimed to moderate imports, formalize markets, and develop financial alternatives, with import duties being a primary tool.
• Recent policy shifts, including reduced import duties, aimed to improve compliance and reduce unofficial trade, easing burden on consumers.
• Despite a 16% year-on-year increase in gold import value to $51 billion, import volumes are down 12%, indicating higher prices, not excessive demand.
• Recommendations for Budget 2026 include gradually lowering customs duties (e.g., 6% to 4%) and rationalizing taxes to align domestic prices with global benchmarks and mobilize household gold wealth.

Why It Matters: Budget 2026 may see gold customs duty cuts and tariff simplification to boost India's global gold market influence.