Gold, Silver Import Duty Hike: India Raises Tariffs on Precious Metals to 15% To Curb Overseas Purchases and Support Rupee

India has increased import duties on gold and silver to 15%, reversing the tariff reductions introduced in 2024 as the government seeks to reduce rising bullion imports, contain the trade deficit and ease pressure on the rupee. The revised rates came into effect on Wednesday, May 13, following multiple customs notifications issued by the Finance Ministry on 12 May.

Under the revised structure, the basic customs duty on several categories of gold and silver imports has been raised to 10% from 5%, while the 5% Agriculture Infrastructure and Development Cess (AIDC) remains unchanged. This takes the total effective import duty on the precious metals to 15%. Gold Rate Today, May 12, 2026: Check 22K and 24K Gold Prices in Delhi, Mumbai, Chennai and Other Cities.

India Raises Gold, Silver Import Duty to 15% 

Gold, Silver Import Duty Hike:

The Finance Ministry also revised customs duty rates on precious metal findings and recyclable precious metal waste through Notification No. 16/2026-Customs.

According to the notification, gold and silver findings will now attract a 5% customs duty, while platinum findings will face a 5.4% duty. Imports of spent catalysts, ash and other recyclable material containing precious metals will attract a concessional 4.35% duty, subject to compliance requirements and recycling-related clearances. Why PM Modi Urged Citizens Not To Buy Gold for a Year: Economic Impact Explained.

The revised structure applies to imports of gold, silver, platinum findings, precious metal ash and spent catalysts containing precious metals, according to the Department of Revenue notifications.

Government Targets Rising Bullion Imports

The decision comes amid concerns over India’s widening trade deficit and pressure on foreign exchange reserves due to rising crude oil prices and growing bullion imports.

India had reduced import duties on gold and silver from 15% to 6% in July 2024 in a bid to discourage smuggling and support the domestic gems and jewellery sector. The latest move effectively restores the earlier higher-duty regime.

India is the world’s second-largest consumer of gold and the largest importer of silver, relying heavily on overseas supplies to meet domestic demand. Policymakers believe higher import duties could help moderate demand for imported bullion and reduce pressure on the current account deficit.

Gold Imports Surge in 2025

Data cited by Reuters showed India’s gold imports rose 1.6% year-on-year to USD 58.9 billion in 2025, while silver imports climbed 44% to USD 9.2 billion. Separate reports indicated that gold imports surged to nearly USD 12 billion in January 2026 alone, contributing to a widening trade deficit that reached a three-month high.

The rupee has also remained under pressure this year, weakened by higher oil prices and external market volatility linked to geopolitical tensions in West Asia.

The tariff revision follows a series of disruptions in the bullion import market over recent months. Banks had temporarily halted gold and silver imports in April after delays in government authorisation orders reportedly left several tonnes of bullion stranded at customs ports. Imports were also affected after authorities began enforcing a 3% Integrated GST levy on bullion shipments.

Prime Minister Narendra Modi had recently urged citizens to avoid non-essential gold purchases for one year in an effort to conserve foreign exchange reserves amid elevated global energy prices.

Industry Warns of Smuggling Risks

Industry executives warned that while higher tariffs may reduce official bullion imports, the move could also revive gold smuggling, which had declined after import duties were lowered in 2024.

Traders and jewellery sector representatives have previously argued that excessively high import duties encourage unofficial supply channels and increase compliance challenges for legitimate businesses. The government has not announced any additional measures alongside the tariff hike but is expected to closely monitor bullion imports and currency movements in the coming months.

(The above story first appeared on LatestLY on May 13, 2026 07:33 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).