ECONOMY
Govt hikes Customs Duty on gold, silver to 15% to curtail imports, save forex reserves
- IBJ Bureau
- May 14, 2026
The Centre has raised the Customs Duty tariffs on imports of gold and silver to 15 per cent from 6 per cent.
The rise in the levy is a part of efforts to curb overseas purchases of the precious metals and ease pressure on the country’s foreign exchange (forex) reserves.
The higher duties could dampen demand in the world’s second-largest consumer of gold and silver.
Moreover, they may help narrow India’s trade deficit and support the rupee, one of Asia’s worst-performing currencies.
However, industry executives warn that higher import taxes could revive smuggling, which had eased after India had cut tariffs in mid-2024.
The government has imposed a 10 per cent basic Customs Duty and a 5 per cent Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports, taking the effective import tax to 15 from 6 per cent.
“As expected, the government has raised duties to curb the current account deficit. However, this could affect demand, as gold and silver prices were already elevated,” India Bullion and Jewellers Association National Secretary Surendra Mehta has said.
Prime Minister Narendra Modi has urged people to avoid gold purchases for a year to help protect foreign exchange reserves.
India meets almost all of its gold consumption through imports.
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