May 13: The Central government has raised import duties on gold and silver to 15% from the earlier 6%, as part of efforts to reduce pressure on India’s foreign exchange reserves and manage rising import-related outflows amid ongoing geopolitical uncertainty in West Asia.
Under the revised duty structure, gold and silver imports will now attract a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC), taking the effective import tax to 15%. Import duty on platinum has also been increased to 15.4% from 6.4%.
The move is aimed at discouraging excessive imports of precious metals, which remain a major contributor to India’s import bill and dollar outflow. Policymakers believe the revised duty structure could help strengthen external account stability during a period of volatile global energy prices and economic uncertainty.
The development comes shortly after Prime Minister Narendra Modi urged citizens to avoid non-essential gold purchases for a year and adopt fuel and spending conservation measures in the national interest.
Despite the higher import duties, investor appetite for gold remains firm. According to data from the Association of Mutual Funds in India (AMFI), gold exchange-traded funds (ETFs) recorded inflows of ₹3,040 crore in April, indicating continued interest in gold as a preferred safe-haven asset during uncertain market conditions.
Meanwhile, silver ETFs continued to see sustained outflows for the third consecutive month, reflecting softer investor sentiment towards silver compared to gold.
The revised duty hike is expected to impact jewellery prices and import volumes in the near term, especially during the ongoing wedding season, while also encouraging a gradual shift towards lighter jewellery, recycling, and alternative investment products.