The Government of India has increased the import duty on gold and silver to 15% [1].
This policy shift comes as the administration attempts to stabilize the national economy by managing trade deficits. By raising the cost of importing precious metals, the government seeks to reduce the outflow of capital and protect its foreign-exchange reserves [1].
The move follows a significant rise in the volume of precious metals entering the country. Gold imports surged more than 24% to $71.98 billion in FY 2025-26 [2]. This spike in spending highlighted a growing vulnerability in the trade balance, prompting the decision to curb non-essential imports [1].
India is one of the largest consumers of gold globally, often driven by cultural and investment demands. The government said the duty hike is necessary to preserve reserves [1]. This measure targets the high cost of imports that can strain the rupee, and impact the overall trade deficit.
Officials said that the primary objective is to discourage the import of these assets when they are not essential for industrial use. The 15% rate is intended to act as a deterrent for speculative imports while maintaining a regulated flow of metals into the domestic market [1].
“The Government of India has increased the import duty on gold and silver to 15%”
This duty increase reflects a strategic effort by India to decouple its domestic demand for gold from its foreign-exchange stability. By making imports more expensive, the government is attempting to lower the current account deficit and reduce reliance on volatile global commodity markets to maintain its currency reserves.
