The recent increase in gold import duties in India is anticipated to decrease demand for gold by 10-15%. This change is expected to push households to sell their old gold, which could help alleviate the country's current account deficit. An estimated 25,000 tonnes of gold is currently idle in Indian households. B Govindan, chairman of Bhima Jewellers, noted that high prices will lead to reduced volume sales, while Surendra Mehta, chairman of the India Bullion & Jewellers Association, warned of a potential rise in gold smuggling. He highlighted that during previous high-duty periods, 100-120 tonnes of gold entered India through illegal channels. Industry experts suggest that promoting lower carat jewellery and discouraging investments in gold bars could further decrease imports by 20-30%. Notably, nearly 50% of sales for major jewellery retailers now come from old gold exchanges, indicating a significant market shift.