Industry Fears Smuggling Demand Hit Impact on Gold Loan Portfolio as Govt Defends Gold Duty Hike as Macroeconomic Safe

India's sharp increase in gold import duty (from 9.18% to 18.45%) is a regulatory measure to curb gold imports and conserve foreign exchange, directly impacting gold demand and the jewellery sector. The channel is regulatory (import tariff) affecting input cost for jewellers and potentially reducing legal gold imports while increasing smuggling risk. The impact is India-specific, with potential spillover to global gold prices via reduced Indian demand. Affected companies include Titan Co (jewellery retailer) and other domestic jewellers facing margin squeeze or volume decline.