Indian Gold ETFs Post Record INR7.25 Billion May Outflows as Imports Drop 39% After Duty Hike
Updated
Updated · World Gold Council · Jun 18
Indian Gold ETFs Post Record INR7.25 Billion May Outflows as Imports Drop 39% After Duty Hike
3 articles · Updated · World Gold Council · Jun 18
Summary
INR7.25 billion in net outflows hit Indian gold ETFs in May, the first monthly withdrawal since April 2025, while gross redemptions surged to a record INR33.3 billion and investor folios fell by 134,343.
A 9% import-duty increase in mid-May, a 5.3% rupee depreciation and a roughly 6% jump in domestic gold prices triggered profit-taking, even as seasonal weakness and the prime minister's appeal curbed physical buying.
INR16.31 billion of net inflows returned to gold ETFs between June 1 and 11, suggesting the May selling was short-lived despite temporary subscription caps imposed by some fund houses.
US$3.4 billion of gold imports entered India in May, down 39% from April and equal to an estimated 25-30 tonnes, as the higher duty cooled demand though imports still rose 34% year on year.
US$25 an ounce was the domestic discount by June 15, down from nearly US$150 after the duty hike, while market participants still expect jewelry demand to stay soft through July before improving from August.