India has reduced the import prices of gold and silver, lowering the notional values used to determine customs duty and easing the duty burden on imports, according to a notification from the Central Board of Indirect Taxes and Customs (CBIC), even as global prices of these metals remain near record levels.
As reported by the Economic Times, the base import price of gold has been lowered by roughly $50 to $1,518 per 10 grams, while silver’s has been reduced by more than $800 to $2,657 per kilogram. These revised rates apply to all forms of gold and silver brought in under designated tariff classifications.
The duty cut also applies to high-purity gold bars and coins, as well as silver bullion and medallions, but does not cover jewelry, other finished precious metal items, or imports via post, courier, or baggage.
With gold and silver reaching record prices, the import value is expected to surge even if shipment volumes stay the same, raising concerns about a widening trade deficit and adding further strain on the rupee, which has already depreciated considerably against the dollar in recent months.
The import price cut comes as trade and industry officials remain cautious, warning that these risks could lead the government to consider increasing import duties on gold and silver in the coming weeks.
India ranks as the world’s second-largest consumer of gold and the leading market for silver, relying almost entirely on imports to meet its gold demand and sourcing over 80% of its silver from abroad.
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