Govt hikes gold, silver import duty to 15% to curb non-essential imports
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New Delhi: The government on Wednesday hiked import duties on gold and silver to 15 per cent from 6 per cent, in a move aimed at curbing inbound shipments of precious metals amid a rising import bill triggered by the West Asia crisis.
The increase, effected through a Finance Ministry notification, comes days after Prime Minister Narendra Modi’s appeal for restraint in gold purchases and other austerity measures to conserve foreign exchange. The revised structure, which includes changes in the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC), has pushed the overall customs duty on gold to 15 per cent with effect from May 13.
India’s gold imports have surged over 24 per cent to a record USD 71.98 billion in 2025–26, even as volumes fell 4.76 per cent to 721.03 tonnes. Rising global prices have contributed significantly, with gold rates increasing from USD 76,617.48 per kg in FY25 to USD 99,825.38 per kg in FY26.
In domestic markets, gold prices rose by Rs 1,500, or nearly 1 per cent, to Rs 1,56,800 per 10 grams on Tuesday from Rs 1,55,300. Silver also jumped sharply by Rs 12,000, or 4.53 per cent, to Rs 2,77,000 per kg.
In global trade, spot gold declined by USD 42.33, or 1 per cent, to USD 4,692.64 per ounce, while silver fell 3.04 per cent to USD 83.49 per ounce.
The duty revision reverses the 2024–25 Budget decision that had reduced customs duty on gold to 6 per cent to support the gems and jewellery industry, curb smuggling, and stabilise domestic prices. India had earlier, in 2022, raised gold import duty to 15 per cent to address a widening current account deficit amid rupee depreciation following the Russia-Ukraine war.
India remains the world’s second-largest gold consumer after China, with demand largely driven by the jewellery sector.
Chief Economic Adviser V Anantha Nageswaran has described the ongoing West Asia crisis as a “live balance of payments stress test”, warning of implications for inflation, the current account, and exchange rate stability. The Indian rupee hit a record low of 95.63 against the US dollar on Tuesday.
On Sunday, Prime Minister Modi urged citizens to adopt austerity measures, including postponing gold purchases and reducing fuel consumption, as part of efforts to conserve foreign exchange. He also suggested increased use of metro services, carpooling, electric vehicles, railway logistics, and work-from-home arrangements.
India is already facing elevated import costs for oil and fertilisers amid the ongoing US-Iran conflict, which has disrupted supply routes and effectively closed the Strait of Hormuz. Nearly 60 per cent of India’s LPG imports pass through the strait, with 90 per cent of that flow now impacted due to the disruption.
With PTI inputs