Gold Demand Declines Amid Rising Prices and Tax Burden

India has witnessed a notable decline in gold demand in recent months, according to industry sources. Trade bodies claim that gold consumption has fallen significantly compared to the same period last year. While demand was estimated at nearly 25 tonnes in May last year, recent figures suggest it has dropped to around 7.5 tonnes, indicating a substantial slowdown in purchases.

Market experts attribute the decline to multiple factors, including higher import duties, increased GST rates, and the overall tax burden on gold purchases. Representatives of the bullion industry believe these factors have affected consumer sentiment and buying patterns. However, discussions continue over whether the decline is primarily driven by economic factors and taxation or influenced by broader calls for reduced gold consumption.