The Government of India has increased import tariffs on gold and silver to 15 per cent, reversing the duty cuts introduced in 2024 as part of efforts to control rising bullion imports, reduce trade deficit pressure and support the weakening rupee amid global economic uncertainty.
The revised duty structure was notified by the Finance Ministry through multiple customs notifications issued on May 12, with the new rates coming into effect from May 13.
Gold, Silver Import Duty Increased
According to the notifications issued by the Department of Revenue under the Ministry of Finance, the basic customs duty on several categories of gold and silver imports has been raised to 10 per cent from the earlier 5 per cent.
In addition to the customs duty, the existing Agriculture Infrastructure and Development Cess (AIDC) of 5 per cent will continue, taking the total effective import tax on gold and silver to 15 per cent.
Revised Duty Structure For Precious Metals
The Finance Ministry also revised customs duties on precious metal findings and recyclable precious metal waste under Notification No. 16/2026-Customs.
Under the revised framework:
- Gold and silver findings will attract 5% customs duty
- Platinum findings will face 5.4% duty
- Spent catalysts and ash containing precious metals will attract concessional duty of 4.35%, subject to recycling and compliance conditions
The revised tariff structure applies to imports of gold, silver, platinum findings, precious metal ash and spent catalysts containing precious metals.
Move Aimed At Reducing Trade Deficit Pressure
The decision comes at a time when India is facing mounting pressure on its current account deficit due to rising crude oil prices and increasing bullion imports.
India’s heavy dependence on imported gold and silver has added pressure on foreign exchange reserves and the rupee, which has remained among Asia’s weakest-performing currencies this year.
India is currently the world’s second-largest consumer of gold and the largest importer of silver, relying almost entirely on overseas supplies to meet domestic demand.
Government Restores Earlier Duty Structure
In July 2024, the government had reduced import duties on gold and silver from 15 per cent to 6 per cent in an attempt to curb smuggling and support the gems and jewellery sector.
The latest move effectively restores the earlier higher-duty regime as the government attempts to moderate import demand and stabilise the external sector.
Bullion Imports Witness Sharp Rise
Recent data showed a sharp increase in bullion imports into India.
Gold imports in 2025 reportedly rose 1.6 per cent year-on-year to $58.9 billion, while silver imports surged 44 per cent to $9.2 billion.
Reports also indicated that gold imports alone touched nearly $12 billion in January 2026, pushing India’s trade deficit to a three-month high.
Concerns Over Smuggling Resurface
Industry experts have cautioned that while higher import duties may reduce official bullion imports, they could also trigger a revival in gold smuggling activities that had declined after the 2024 duty cuts.
The tariff hike also comes shortly after Prime Minister Narendra Modi appealed to citizens to avoid non-essential gold purchases for a year to help conserve foreign exchange reserves amid global geopolitical tensions and rising energy costs.
