India's gold imports are projected to fall to 15 metric tons in April 2023, marking a 57% decline from 35 tons in April 2022 and nearing a 30-year low. This drop is largely due to a newly imposed 3% integrated goods and services tax (IGST) on gold imports by banks, which have halted shipments since the tax demand was announced. In the previous fiscal year, India averaged about 60 tons of gold imports monthly, making this decline particularly significant. The timing coincides with the Akshaya Tritiya festival, a major gold buying occasion, during which Indians typically purchase gold, further complicating the situation. The Indian government appears to be implementing these tax measures to reduce the trade deficit and stabilize the Indian rupee, which has struggled against other Asian currencies this year. As a result, gold that was anticipated to be sold during the festival remains in bank vaults, awaiting clearance from customs without the tax demand. This situation could potentially exert downward pressure on global gold prices.