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Gold Duty Hike To Raise Domestic Prices, May Widen Grey Market activity: SBI
Report flags potential impact on bullion trade and current account deficit as higher import duty reshapes gold market dynamics
The recent hike in customs duty on gold imports to 15 per cent is expected to push up domestic gold prices, influence trading patterns in the bullion market, and potentially weigh on India’s current account deficit (CAD), according to a report by SBI Research.
The report said higher import duties on gold have historically led to unintended market distortions, including the diversion of physical supplies through unofficial routes. “The decision to increase duty on gold imports has been taken on numerous occasions in the past. However, imposition of duty has its consequences in diverting the physical supply to grey channels,” the report said.
It added that the widening difference between global and domestic gold prices after a duty increase creates scope for arbitrage activity. “This is driven by higher spread between the offshore and onshore price of gold, which creates opportunity for arbitrage,” the report added.
SBI Research also pointed out that the government had sharply reduced the duty on gold imports before the latest increase. “Also, it should be kept in mind that duty on gold was reduced by more than half to 6 per cent in June 2024 till the current rise to 15 per cent,” the report stated.
The report observed that previous hikes in gold import duties were often accompanied by a rise in seizures by enforcement agencies, indicating a possible increase in smuggling activity.
On the external sector, SBI Research said gold imports remain a concern for India’s current account position. “The impact of gold on the Current Account Deficit (CAD) is a matter of concern,” the report said.
However, it clarified that fluctuations in the CAD cannot be linked entirely to gold imports alone. The report noted that there is no definitive trend showing that changes in the current account balance have been solely driven by gold imports, although recent estimates indicate the metal continues to have a sizeable impact.
The analysis further showed that even as import volumes have declined in recent years, the overall value of gold imports has risen sharply because of elevated prices. The gold import bill is projected to increase from USD 57.9 billion in FY25 to USD 72.4 billion in FY26.
Meanwhile, import volumes have continued to decline since FY24, falling by around 5 per cent in both FY25 and FY26.
Looking ahead, SBI Research expects the latest duty hike to result in some moderation in import volumes, similar to trends seen after earlier increases. “We expect that the current hike in duty may see similar trends as seen in past. However, we also feel that given the strong negative volume effect seen in recent two years, there will be some downward adjustment in volumes, the extent of which is, however, uncertain,” the report added.
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Tier 3 & 4 Cities Emerge As Retail Growth Engines
Malls outperform high streets on footfall as ethnic wear leads demand and premium stores drive better engagement, reveals Enalytix report
Tier 3 and Tier 4 cities are fast emerging as key retail growth hotspots in India, even as malls continue to outperform high-street formats on footfall, according to a latest FY2026 analysis by Enalytix, an AI-driven video analytics firm.
The report highlights a structural shift in India’s physical retail landscape, where growth is increasingly being driven not just by higher footfall but by improved quality of shopper engagement and conversion potential.
Mall-based retail continues to dominate in terms of scale, recording nearly 50 per cent higher footfall compared to high-street stores, with overall mall traffic rising around 15 per cent year-on-year. Weekend shopping remains a significant driver, with mall stores witnessing a 40 per cent surge in footfall, while high-street outlets see relatively moderate gains.
However, high-street formats retain an edge in shopper intent, recording around 10 per cent higher dwell time, suggesting more focused and purpose-driven visits.
Across city tiers, Tier 1 markets continue to lead with approximately 20 per cent year-on-year growth and 25 per cent higher footfall than Tier 2 cities. At the same time, Tier 3 and Tier 4 cities are steadily gaining traction, posting around 10 per cent growth while demonstrating stronger in-store engagement and higher conversion potential.
Consumer behaviour trends indicate that the 5 PM to 8 PM window remains the peak shopping period, accounting for nearly 46 per cent of daily footfall. Categories such as jewellery and electronics see the highest engagement levels, with significantly longer dwell times, while apparel continues to attract consistent browsing interest.
Within fashion, ethnic wear has emerged as the top-performing segment, driving nearly double the footfall compared to other categories. Fast fashion continues to benefit from repeat purchases, while the overall apparel category has recorded around 10 per cent growth year-on-year.
A notable divergence is visible between value and premium fashion segments. Premium stores report stronger engagement and higher dwell time, while value fashion brands face nearly double the abandonment rate, indicating challenges in converting store visits into purchases despite high traffic.
Commenting on the trends, Rajul Tandon, Founder and CEO of Enalytix, said retail growth is increasingly being defined by the quality of engagement rather than just scale. He added that while malls and Tier 1 cities continue to drive volume, emerging markets in Tier 3 and Tier 4 cities are becoming high-engagement ecosystems with strong conversion potential.
Store experience and staff interaction are also proving critical. Retail outlets where staff engage customers within the first two minutes of entry see higher dwell times and lower bounce rates, especially during peak evening hours.
Looking ahead, expansion strategies are aligning with regional demand patterns. Apparel and fast fashion brands are accelerating their presence in smaller cities, while sports and fitness formats are focusing on Tier 1 and Tier 2 markets. Increasingly, retailers are leveraging AI-led insights to optimise store formats, locations and in-store strategies.
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ITC Expands Candyman Portfolio With Soft Chews
The company is widening its confectionery offerings beyond hard candies as softer and texture-led formats gain traction among younger consumers
ITC has expanded its Candyman confectionery range with the introduction of Fruitee Fun Soft Chews, as companies in India’s confectionery market increasingly diversify beyond traditional hard candy formats.
The product expansion comes as confectionery makers focus on newer formats such as gummies, jellies and soft chews to cater to changing consumer preferences, particularly among children and younger buyers.
ITC on Wednesday released a new digital campaign for Candyman Fruitee Fun Soft Chews, reviving the brand’s “Kuch Bhi Karega for Candyman!” tagline. The campaign film, created by Ulka, centres on the product’s soft texture and fruit flavours.
“While the confectionery category in India continues to be largely taste-led, we are seeing a growing importance of experience, especially among younger consumers,” said Subash Balar, Vice President and Business Head, Chocolates, Coffee and Confectionery and NCD, ITC Foods.
The company said the product has been developed with a soft and chewy texture as part of efforts to broaden Candyman’s portfolio and align with evolving consumption trends in the category.
The campaign film features a fictional storyline built around a truck carrying Candyman products that is stopped by kangaroo characters demanding candies in exchange for passage.
Rakesh Menon, Chief Creative Officer at Ulka, said the campaign was designed around imaginative and playful storytelling linked to the product format.
India’s confectionery market has seen companies introduce newer product formats in recent years as competition increases across low-price impulse purchase categories. ITC said Candyman Soft Chews forms part of its broader confectionery portfolio expansion strategy focused on format innovation and product differentiation.
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Papa Johns Taps Swiggy, Zomato For Expansion
The company said integrating aggregator platforms with its backend systems and supply chain operations is expected to improve order visibility and support higher delivery volumes
Papa John’s has started offering deliveries through Swiggy and Zomato, widening its distribution network in India as the brand scales operations following its return to the market last year.
The move marks a shift from the company’s initial India strategy, which relied primarily on direct ordering through its own mobile app and in-house delivery operations after restarting local business in late 2025, the company said in the issued release.
Papa Johns currently operates eight stores in Bengaluru and plans to open 30 additional outlets in the city during the current financial year, according to franchise operator Ambrosia QSR, which is backed by Pulsar Capital.
The company said integrating aggregator platforms with its backend systems and supply chain operations is expected to improve order visibility and support higher delivery volumes.
“The launch of aggregator delivery is an important step in scaling Papa Johns in India,” said Prashant Mehta, Managing Partner, Ambrosia QSR.
“Over the past few months, our focus has been on building a strong operational foundation, including store execution, supply chain, and direct delivery capabilities. With aggregators now live, we are well-positioned to expand reach while maintaining control over quality and experience,” he said.
The expansion comes as restaurant chains increasingly depend on third-party delivery platforms to grow customer reach and compete in India’s crowded online food delivery market.
Papa Johns had earlier focused on building store infrastructure, backend operations and direct ordering channels before expanding to aggregator-led delivery. The company said it would continue to pursue store expansion with an emphasis on operational efficiency and unit economics.
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Quick Commerce Sees Wellness-led Shift In Mother’s Day Gifting
Instamart says demand for protein supplements, massagers and sleep gummies surged during Mother’s Day week, pointing to a broader shift in quick commerce gifting trends
Wellness products emerged as one of the fastest-growing Mother’s Day gifting categories on quick commerce platform Instamart this year, signalling a shift in urban consumer spending beyond traditional flowers, cakes and chocolates.
According to data shared by the company, orders for products linked to self-care, fitness and recovery, including protein supplements, sleep gummies and massagers, saw sharp growth during the week leading up to Mother’s Day on 10 May.
Massager orders rose 136 per cent year-on-year, while beauty gift packs climbed 77 per cent. Premium perfumes also recorded a 134 per cent increase, reflecting rising demand for higher-value and more personalised gifting options.
The trend suggests quick commerce platforms are increasingly being used not just for last-minute purchases, but also for occasion-led and lifestyle-focused shopping categories.
Comfort, Self Care Categories See Higher Spending
Instamart’s data showed consumers also spent more on products associated with comfort and relaxation. Orders for candles, diffusers and décor items rose 34 per cent during the period, with stronger traction seen in cities such as Kolkata and Jaipur.Some of the platform’s highest-value carts reflected the wellness shift more directly. A large order from Gurugram included whey protein, fermented protein beverages and pre-workout products, while a Jaipur order centred on magnesium supplements and sleep gummies.
Traditional gifting categories, however, continued to dominate overall volumes. Chocolates featured in 15 of the top 20 most-ordered gifting products during the week, reinforcing their position as the preferred last-minute purchase category.
Cake demand also remained strong, with ice cream cake orders rising 69 per cent and peaking around 7 pm on Mother’s Day evening. Bouquet purchases nearly doubled from a year earlier, rising 97 per cent as consumers opted for larger floral arrangements.
Bengaluru Tops Gifting Volumes
Bengaluru emerged as Instamart’s largest Mother’s Day gifting market, followed by Mumbai, Hyderabad, Chennai and Delhi.Regional preferences varied across markets. Mumbai and Pune consumers leaned towards mawa cakes and chocolates, while shoppers in Chennai and Kochi preferred brownie cakes and regional dessert options.
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Lighting Industry Resilient Amid West Asia Tensions, Seeks GST Cut
Elcoma says LED price erosion has begun stabilising and replacement demand is improving, though dependence on Chinese components continues to remain high
India’s lighting industry has not yet seen any major disruption from the ongoing West Asia tensions, even as manufacturers continue to depend heavily on other countries, including china for critical LED components like chips and raw materials, industry body Elcoma said, while urging the government to reduce GST on LED products to 5 per cent from 18 per cent.
“We don’t see much impact so far. A little bit of some material, very small, not very significant impact on the cost side which some of the industry players have absorbed and some of them has passed it on to the market, but not very significant so far,” Parag K Bhatnagar, president of the Electric Lamp and Component Manufacturers’ Association of India (Elcoma) said while taking to BW Retail World.
The comments come as industries monitor the impact of geopolitical tensions on shipping costs, crude oil prices and supply chains.
“Consumer demand is robust. I will not say it is like very plump, very high or something like that, but it is very positive. Lighting industry at least is seeing much better growth what had happened previous year in Q1, Q2, Q3” he said on the sideline of Lighting world and Home Tech Expo unveiling which would be held at Bharat Mandapam in January 2027.
Bhatnagar said demand remained steady despite inflationary pressures and broader macroeconomic uncertainty, while years of sharp LED price erosion had started stabilising, improving profitability, along with rising replacement demand.
Government procurement prices for LED bulbs under the Ujala scheme declined from Rs 310 per unit in January 2014 to Rs 38.45 in March 2024, reflecting the rapid adoption of energy-efficient lighting across the country.
LED products now account for more than 60 per cent of India’s lighting market by value, according to industry estimates.
“Rs 100 lamp and now it is Rs 50 lamp can be used for 10 years,” Bhatnagar said, referring to the sharp fall in prices alongside improvements in durability and efficiency.
China Dependence Persists
Even as domestic manufacturing expands, the industry acknowledged that India continues to rely heavily on imports, particularly from China, for LED chips, phosphor and other components.India imported USD 89.8 billion worth of electronics, telecom and electrical products in 2023-24, according to the Global Trade Research Initiative, with China and Hong Kong together supplying more than half of India’s electronic components, with 2024 imports of electrical and electronic equipment from China alone exceeding USD 47 billion.
Bhatnagar described localisation as a gradual process requiring significant engineering capability, although investments in domestic manufacturing had increased under government-backed schemes such as the Production Linked Incentive (PLI) programme.
Adding that India’s local component ecosystem was still at an early stage and would take time to mature, describing it as a ten-year journey that had only recently begun.
“Most of the branded companies today have their own manufacturing facilities,” he said.
The Elcoma president said India’s local component ecosystem was still at an early stage and would take time to mature. He said the industry wanted faster development of a domestic component ecosystem to reduce import dependence.
“If we can have the entire component ecosystem in India, I think that will be a great contribution from the government to the lighting industry,” he said.
GST Cut Demand
Elcoma also urged the government to lower GST on LED products from 18 per cent to 5 per cent, arguing that LEDs are mass-use, energy-efficient products used across households.“I think 18 per cent is a very high GST on LED. Could be lesser,” the Elcoma president said.
The industry body said lower taxation would improve affordability and further accelerate LED adoption across urban and rural markets.
Bhatnagar also credited the government’s Ujala scheme for accelerating LED adoption across India, particularly in smaller towns and rural areas. “It would have taken us another 5 years, 10 years, I don’t know, how many years to educate people. So, that government has done,” he said.
Smart Lighting Slow
On smart lighting and automation, industry executives said adoption remained largely concentrated in tier 1 cities and commercial applications, although consumer interest was growing rapidly.“Automation is more in tier 1, but I feel very quickly with much more faster speed it will move,” the Elcoma president said.
Residential adoption of smart lighting solutions remains relatively small, with the executive estimating the market size at around Rs 500 crore. “Residential adoption as of now is very minimal,” he said.
Amal Sengupt said the convergence of smart lighting and home automation is reshaping the sector. “The integration of lighting with intelligent home systems is redefining how the industry operates,” said Amal Sengupta, Secretary General, Elcoma
Industry executives said future growth would increasingly come from connected devices, AI-enabled automation and integrated energy-saving ecosystems, although ease of use remained a key challenge for consumers.
“Consumers sometimes struggle and they have to learn a lot to manage devices,” the executive said, adding that manufacturers were now working towards creating more intuitive systems for consumers.
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Nespresso Enters Mumbai With First Store At BKC
Premium coffee brand accelerates India expansion with immersive retail pavilion at Jio World Drive
Nespresso has marked its official retail entry into Mumbai with the launch of its first store in the city at Jio World Drive, Bandra Kurla Complex, strengthening its presence in one of India’s most influential cultural and commercial hubs.
The move comes amid rising demand for premium, in-home coffee experiences, with increasingly discerning consumers driving growth in the high-quality coffee segment. Mumbai, seen as a key market in this evolution, is expected to play a pivotal role in the brand’s next phase of expansion in India.
The new outlet—designed as an immersive pavilion rather than a conventional café—offers a curated retail experience that blends accessibility with coffee craftsmanship. The space is built to engage both new and existing consumers through product discovery, sensory exploration and personalised consultations aimed at decoding individual taste preferences.
Nespresso’s full portfolio of coffees, machines and accessories will be available through its India partner, Thakral Innovations Pvt. Ltd, which continues to support the brand’s distribution and retail strategy in the country.
Commenting on the launch, Manish Tiwary, Chairman and Managing Director of Nestlé India, said Mumbai’s dynamic consumer base makes it a natural fit for the brand’s expansion. He added that the new pavilion is designed to offer coffee lovers an elevated and interactive experience.
Renaud Tinel, Head of Zone Asia Pacific at Nespresso, emphasised that India is a strategic priority market for the brand. He noted that growing consumer appreciation for premium coffee is encouraging Nespresso to deepen its footprint and expand access across key urban centres.
The Mumbai launch follows Nespresso’s recent expansion in Gurugram and marks the brand’s third store in India, signalling an accelerating retail footprint.
Globally, Nespresso operates in 93 markets and partners with over 168,000 farmers across 18 countries through its sustainability initiatives. The company is also part of the global B Corp movement, reflecting its focus on environmental and social responsibility. -
Juicy Chemistry, Two Brothers Debut Farm-to-Face Skincare Line
Collaboration blends Lakadong turmeric and bilona A2 ghee to create certified organic skincare rooted in farm-to-face philosophy
Juicy Chemistry has partnered with Two Brothers Organic Farms to introduce a new skincare line powered by Lakadong turmeric-infused ghee, marking a unique convergence of certified organic farming and skincare formulation.
Positioned as a first-of-its-kind collaboration, the range includes a Cold Process Soap Bar and a Rose & Lakadong Turmeric Ghee Lip Balm. Both products are crafted using bilona-made A2 ghee sourced from Two Brothers Organic Farms, infused with GI-tagged Lakadong turmeric—an ingredient prized for its high curcumin concentration.
Grown in the West Jaintia Hills of Meghalaya, Lakadong turmeric contains curcumin levels of 10–12 per cent, significantly higher than the 3–4 per cent typically found in standard variants. This elevated potency enhances its anti-inflammatory, antibacterial and skin-brightening properties, making it a compelling addition to topical formulations.
In the new range, bilona-crafted ghee acts as a natural carrier, improving the bioavailability of curcumin and enabling deeper absorption into the skin. The lip balm formulation further integrates Bulgarian Damask rose oil, used as an active ingredient rather than a fragrance, to support skin barrier repair and long-lasting hydration.
The combination of rose and turmeric draws from traditional Ayurvedic skincare pairings, reinterpreted in a modern, certified organic format. Both brands are Ecocert-certified, underscoring a shared emphasis on independently verified organic standards over self-declared claims.
Megha Asher, Co-Founder and COO of Juicy Chemistry, said, “At Juicy Chemistry, we have always said that if it is good enough to eat, it is good enough for your skin. This collaboration makes that principle as literal as it has ever been.”
Satyajit Hange, Co-Founder of Two Brothers Organic Farms, added, “Two Brothers was built on the belief that what you put into your body should be as honest as the people who grew it. Working with Juicy Chemistry feels like a natural extension of that belief.”
The Organic Lip Balm is priced at ₹400, while the Cold-Processed Soap Bar is priced at ₹499. The products are available via Juicy Chemistry’s official website.
Founded in 2014 in Coimbatore by Megha and Pritesh Asher, Juicy Chemistry is recognised as India’s first COSMOS-certified organic skincare brand, with exports spanning over 20 countries. Two Brothers Organic Farms, founded by Satyajit and Ajinkya Hange, operates across India and exports to over 45 countries, offering certified organic produce rooted in sustainable agriculture practices. -
GJEPC Warn Gold Demand Curbs Could Hit Lakhs Of MSMEs, Artisans
lready pushed gold into the luxury category for many buyers.
The industry, she said, has been adapting to elevated prices by focusing on lightweight jewellery, lower-carat products and increased use of recycled gold, alongside exchange-based purchases.
With the festive and wedding season nearing, Ranawat said the priority should now be to strengthen the domestic jewellery ecosystem with lower import reliance while continuing to support manufacturing, exports, craftsmanship and employment generation. She added that the industry must work collectively to navigate the current challenges.
GJEPCmid global economic uncertainties, while cautioning that any prolonged weakness in demand could adversely affect lakhs of MSMEs, artisans and workers linked to the sector.
Industry representatives said a sustained slowdown in gold consumption could disrupt employment and hurt small businesses that form the backbone of India’s jewellery ecosystem.
Highlighting the scale of the industry, Khushboo Ranawat, Chairperson-Western Region at Gem and Jewellery Export Promotion Council (GJEPC) said the sector supports nearly 300,000 businesses, including manufacturers, polishers, stone setters and family-run enterprises spread across major hubs such as Mumbai, Surat, Jaipur, Kolkata and Hyderabad.
At the same time, she acknowledged the government’s concerns over preserving foreign exchange reserves and lowering dependence on imported gold. Ranawat said the industry believes greater emphasis must now be placed on recycling gold domestically to reduce fresh imports.
She added that India already has significant gold reserves in the form of household holdings and temple gold, which could potentially ease import dependence if supported by stronger recycling and monetisation frameworks. According to her, the industry and the government need to collaborate more effectively after earlier gold monetisation schemes failed to gain wider acceptance.
Ranawat further said gold cannot be treated merely as a trade commodity in India because of its deep-rooted cultural significance linked to weddings, household savings and traditions. She noted that rising prices have already pushed gold into the luxury category for many buyers.
The industry, she said, has been adapting to elevated prices by focusing on lightweight jewellery, lower-carat products and increased use of recycled gold, alongside exchange-based purchases.
With the festive and wedding season nearing, Ranawat said the priority should now be to strengthen the domestic jewGJEPCellery ecosystem with lower import reliance while continuing to support manufacturing, exports, craftsmanship and employment generation. She added that the industry must work collectively to navigate the current challenges.
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Former Arvind Fashions CEO Raises Rs 90 Cr For New Venture Neopolis
Neopolis Brands plans to partner with global fashion labels and expand across handbags, accessories and womenswear as rising premiumisation drives demand in India’s organised retail market
Former Arvind Fashions chief executive Shailesh Chaturvedi has raised ₹90 crore for his new venture Neopolis Brands, as he looks to build and scale global fashion and lifestyle labels in India amid rising demand for premium accessories and womenswear.
The funding round has drawn backing from investors including Ashish Kacholia and Lashit Sanghvi, along with strategic partners such as Brandix and Manipal Technologies.
Neopolis Brands plans to partner with international fashion and lifestyle brands that are market leaders in their home countries and expand them in India through a localisation-led and omnichannel strategy. The company will initially focus on categories such as handbags, accessories and womenswear, segments that continue to see increasing demand from urban consumers.
The move comes as India’s premium fashion market witnesses accelerated growth driven by rising disposable incomes, premiumisation trends and increasing adoption of branded products beyond metro cities. Industry estimates peg the handbags and accessories market at nearly Rs 20,000 crore, while the organised segment remains relatively small at around Rs 7,000 crore.
Chaturvedi said the company aims to build multiple large-scale brands with a strong online presence alongside extensive offline distribution.
“Scaling is important for profitability, and I am enthused about building few large brands each with min 100 stores in India, each with a large-scale ecommerce share in tune with current consumer trends, alongside distribution in min 40 to 50 cities. Also, I am truly happy to see very strategic investors coming on Board to support this new journey of Neopolis,” he said.
The company said the capital will be used for organisational expansion, working capital requirements, investments in brands, supply chain strengthening, store rollout and digital capabilities.
Commenting on the investment, Ashish Kacholia of Lucky Investments Managers said, “Women fashion and accessories continue to present a large, untapped opportunity in India, with strong consumer demand but limited organized scale. Neopolis’ focussed approach and industry expertise positions it strongly for building large scale category leading brands.”
Lashit Sanghvi of Alchemy Capital added, “We closely observed how a large public listed company was turned around rapidly under Shailesh’s leadership and his track record of more than 3 decades in scaling up global brands profitably gives us strong confidence in potential of Neopolis brands.”