India Raises Gold, Silver Import Duty To 15%
India Raises Gold, Silver Import Duty To 15%
New Delhi, May 13, 2026: The Central government has increased the effective import duty on gold and silver to 15 per cent, rolling back the reductions introduced in 2024. The revised rates came into effect from May 13 following fresh notifications issued by the Finance Ministry.
Under the new structure, the basic customs duty on several categories of gold and silver imports has been raised from 5 per cent to 10 per cent. In addition, the existing 5 per cent Agriculture Infrastructure and Development Cess (AIDC) will continue, taking the overall import tax on precious metals to 15 per cent.
The Finance Ministry has also revised customs duty rates for precious metal findings and recyclable precious metal waste. According to the updated notification, imports of gold and silver findings will now attract a 5 per cent customs duty, while platinum findings will face a 5.4 per cent levy. Imports of spent catalysts and ash containing precious metals meant for recycling will continue to receive concessional treatment at 4.35 per cent, subject to prescribed conditions and approvals.
The decision comes amid growing concerns over India’s widening trade deficit, rising bullion imports and pressure on foreign exchange reserves. Officials believe higher import duties could discourage excessive gold and silver imports and help stabilise the rupee, which has weakened significantly against the US dollar this year.
India had reduced import duties on gold and silver from 15 per cent to 6 per cent in July 2024 to curb smuggling and support the gems and jewellery industry. However, a sharp rise in bullion imports since then has reportedly prompted the government to restore higher tariff rates.
India remains the world’s second-largest consumer of gold and the largest importer of silver, relying heavily on overseas purchases to meet domestic demand. Recent data showed gold imports rising sharply in early 2026, contributing to a widening trade gap. Silver imports also recorded a significant increase during the same period.
The revised tariff structure follows recent disruptions in bullion imports after banks temporarily halted shipments due to delays in government approvals and the implementation of Integrated GST rules on bullion consignments.
The move also comes shortly after Prime Minister Narendra Modi appealed to citizens to avoid non-essential gold purchases for a year in view of pressure on foreign exchange reserves caused by rising crude oil prices and geopolitical tensions in West Asia.
Industry experts have warned that while the higher duties may reduce official imports, they could also lead to a rise in smuggling activities, which had declined after import taxes were lowered in 2024.
