India sees surge in cash gold sales as prices and taxes rise

India: India is a major South Asian economy and one of the world's largest markets for gold consumption, driven by cultural traditions around jewelry, gifts, and savings. Recent developments show that elevated global bullion prices combined with higher import levies and taxes are pushing more retail buyers toward informal cash transactions without receipts. This trend highlights challenges in curbing demand and managing trade balances through fiscal measures. Taxation: India has more than doubled the import duty on gold and silver to 15%, with retail buyers also facing an additional 3% GST. Consumer Behavior: High prices and taxes are prompting more Indian buyers to seek discounts through untraceable cash deals in the gold market. Regulatory Impact: The growth in off-the-books sales is expanding the grey market and complicating official data on imports and tax collection.