By: The Trek News Desk
In a significant policy move aimed at stabilising India’s currency and reducing pressure on foreign exchange reserves, the government has sharply increased import duties on gold and silver from 6% to 15%, according to an official notification issued on Wednesday (May 13, 2026).
Under the revised structure, imports of gold and silver will now attract a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC), effectively raising the total tax burden to 15%.
Officials said the decision is intended to curb excessive imports of precious metals, which in turn may help reduce the country’s trade deficit and provide support to the rupee, which has recently faced volatility. India is the world’s second-largest consumer of gold, with most of its demand met through imports.
However, the move is expected to impact domestic demand, as higher duties are likely to push up jewellery prices in the local market. Industry representatives have also raised concerns over potential side effects of the decision.
Surendra Mehta, National Secretary of the India Bullion and Jewellers Association, noted that gold prices were already elevated, and the additional tax burden could further weaken consumer demand.
Experts have also cautioned that higher import duties may revive smuggling activities, which had reduced after previous tariff cuts in 2024.
The development comes shortly after Prime Minister Narendra Modi urged citizens to limit gold purchases for a year, citing the need to protect foreign exchange reserves and maintain broader economic stability.
Overall, the policy is seen as part of a wider effort by the government to manage the current account deficit and strengthen macroeconomic conditions amid global financial pressures.
Source: News Agencies
