India Raises Gold, Silver Import Duty to 15%

The finance ministry has raised the import duty on gold and silver to 15% from 6%, combining a 10% basic customs duty with a 5% Agriculture Infrastructure and Development Cess. According to a finance ministry notification, the change takes effect at midnight and reverses a July 2024 decision that had cut the effective duty to 6%.

The higher tariff increases the landed cost of imported bullion. Importers, jewelry manufacturers and retail buyers will face larger payments on shipments of gold, silver bars, coins and other precious metals. The notification applies to shipments arriving after the duty change becomes effective.

Prime Minister Narendra Modi had urged citizens earlier in the week to curb gold purchases for a year, along with calls to reduce fuel use, revive remote work where feasible and postpone foreign travel. Shares of jewelry companies including Titan, Senco Gold and Kalyan Jewellers fell earlier in the week after the prime minister’s appeal.

Data from the World Gold Council show monthly gold imports into India averaged 83 tonnes in January and February 2026, compared with a monthly average of 53 tonnes in 2025. The council’s Q1 report stated: “Total gold demand in Q1 rose 10% y/y to 151t, although volumes remained 9% below their long-term average. In value terms, demand nearly doubled, surging 99% y/y to a record INR2,275bn (US$25bn). Strong investment demand of 82t, led by bars, coins and ETFs, more than offset weaker jewellery volumes (66t), while industrial demand held steady (2t).”

The country’s trade deficit reached $330 billion in the fiscal year 2026, with gold and silver accounting for about 11% of total imports. Officials point to regional tensions affecting shipping routes and energy markets as factors contributing to trade and currency pressures.

The rupee has weakened this year, losing close to 5% since Feb. 28 and trading near a record low of about 95.74 to the dollar. Currency depreciation raises the local-currency cost of imports and will add to the effective price paid by Indian buyers for imported bullion.

Traders and importers are reassessing import timing and inventory levels in response to the higher duty. Regulators and businesses will monitor whether the tax change shifts buying toward second-hand markets, reduces formal gold imports or slows domestic consumption of jewelry and investment bars.