No plan to raise import duty on gold, silver, says govt source
This story was originally published at 15:33 IST on 11 May 2026
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--Govt source: No plan to hike import duty on gold, silver
NEW DELHI – The government currently has no plan to raise the import duty on gold and silver to discourage unnecessary imports, a government official told Informist. Prime Minister Narendra Modi Sunday urged citizens to reduce fuel consumption and avoid non-essential gold purchases to reduce India's import bill and save foreign exchange.
The rupee has depreciated over 4% since the US and Israel jointly attacked Iran on Feb. 28. It hit a record low of 95.43 against the dollar last week. The Indian currency has weakened because of higher dollar outflows from imports, particularly crude oil, following supply disruptions in West Asia.
Following the prime minister's call to reduce imports, the market was anticipating the possibility of a higher import duty on gold and silver to curb imports and manage dollar outflows, Kedia Advisory said in a note. "Industry estimates suggest that a duty hike could reduce gold import volumes by nearly 10–12%," it added. Gold and silver imports currently attract 6% duty.
The import demand for jewellery consumption has already declined nearly 20% on year as high prices discouraged discretionary purchases. About 50% of India's jewellery demand is currently met through old gold exchange and recycling, the brokerage said.
"The government's broader message is not against gold ownership, but against excessive fresh imports during a sensitive macroeconomic period," Kedia Advisory said. Indian households carry about 20,000 tonnes of gold, which could be better used through recycling, exchange, and monetization, the consultancy firm said. End
Reported by Sagar Sen
Written by Afra Abubacker
Edited by Rajeev Pai
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