India, the world’s second-largest consumer of gold, has increased import duties on gold and silver to 15% from 6% in an effort to curb rising precious metal imports and ease pressure on foreign exchange reserves.
The finance ministry revealed the changes through multiple customs notifications issued on Tuesday, with the revised rates taking effect on Wednesday. Under the new structure, the government raised the basic customs duty on several categories of gold and silver imports to 10% from the previous 5%.
Separately, the Finance Ministry revised customs duty rates on precious metal findings and recyclable precious metal waste through Notification No. 16/2026-Customs. Under the updated framework, imports of gold and silver findings will now face a 5% customs duty, while platinum findings will attract a 5.4% levy.
The notification also stated that imports of spent catalysts or ash containing precious metals will be subject to a concessional 4.35% duty, provided importers meet specified compliance and recycling requirements.
The decision comes as India faces mounting pressure on its current account deficit and currency amid rising crude oil prices and growing bullion imports.
According to Mint, the government introduced the measure to curb non-essential precious metal imports, which led to significant foreign exchange outflows while contributing little to productive industrial activity. India, a major crude oil importer, is also facing renewed pressure from volatile global oil prices and disruptions in shipping routes. Rising energy costs could further widen the current account deficit and increase inflationary pressures.
The tariff increase follows several recent developments in the bullion market. Earlier, Reuters reported that Indian banks temporarily suspended gold and silver imports in April due to delays in government authorization approvals, leaving large quantities of bullion stranded at customs. Banks had also paused imports after authorities started enforcing a 3% Integrated GST on bullion shipments.
According to data from Global Trade Research Initiative (GTRI), India’s gold bar imports increased from $36.5 billion in 2022 to $58.9 billion in 2025, with shipments from the UAE accounting for a growing portion of total imports.
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