• Import duty impact: The increase in import duty from 6% to 15% is expected to cut gold import volumes by 10% to 15% to help control the current account deficit and support the rupee.
• Gold recycling potential: With 50% to 55% of jewelry transactions already driven by old gold exchange, the industry is advocating for policies to reuse the estimated 20,000 to 30,000 tons of idle gold held in domestic households and temples.
• Product mix strategy: Senco Gold plans to offset volume pressure by promoting lightweight designs and diamond jewelry in lower purities, such as 18-karat, 14-karat, and 9-karat, to fit consumer budgets.
• Inventory and margins: Jewelers expect an immediate inventory gain from the duty-led price increase and do not anticipate major margin pressure, despite an expected 10% to 15% de-growth in sales volumes.