The Indian government has increased the customs duty on imports of gold, silver, and other precious metal findings to 15% [1].
This policy shift is designed to reduce the national trade deficit by curbing the volume of bullion entering the country. By limiting these imports, the Finance Ministry aims to support the value of the rupee and defend the currency against external pressures [1, 4].
The new tax rules reportedly took effect on May 13, 2026 [5], though some reports suggest a different effective date of Jan. 22, 2026 [6]. The hike represents a significant increase from previous rates. Some data indicates the previous duty on gold and silver was six% [1], while other findings for jewelry components were previously taxed at 11% [3].
To reach the 15% total, the government structure includes a basic customs duty and an additional agriculture infrastructure and development cess of five% [4]. This combination ensures a higher cost for imported precious metals, making domestic sourcing more attractive for jewelers and investors.
India remains one of the world's largest consumers of gold, which often puts pressure on its current account deficit. The decision to raise tariffs is a strategic move to manage the flow of foreign exchange and stabilize the domestic economy [1, 4].
“Customs duty on imports of gold, silver, and other precious metal findings increased to 15%”
India's decision to raise tariffs on precious metals is a classic macroeconomic tool used to protect the national currency. By increasing the cost of gold and silver imports, the government seeks to lower demand for foreign-denominated assets, thereby reducing the outflow of dollars and narrowing the trade gap to ensure greater financial stability.
