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Informist, Wednesday, May 13, 2026

 

--Govt raises customs duty on gold, silver to 15% from 6%
--Govt raises basic customs duty on gold, silver to 10% from 5%
--Govt raises agriculture cess on gold, silver to 5% from 1%

 

NEW DELHI – In a bid to dissuade people from buying gold and curb imports of precious metals, the government on Tuesday increased duties on gold and silver to 15% from 6%. In notifications issued late Tuesday night, customs duties on gold and silver imports were increased to 10%, while the Agriculture Infrastructure and Development Cess was increased to 5%. In the Budget for 2024–25 (Apr-Mar), customs duties on gold and silver were reduced to 6% from 15%. The government has also increased the import duty on platinum to 15.4% from 6.4%.

 

"As a large importer of crude oil, India remains vulnerable to elevated energy prices and supply-side disruptions, which can increase the import bill, exert pressure on inflation, and the current account deficit," a government official said. The hike in import duty on precious metals will help in prioritising the import of essential items such as crude oil, fertilisers, industrial raw materials, defence requirements, critical technologies, and capital goods.

 

This comes just a few days after Prime Minister Narendra Modi urged people 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% against the dollar since the US and Israel jointly attacked Iran on Feb. 28. It hit a record low of 95.74 against the dollar on Tuesday.

 

The Indian currency has weakened due to increased demand for dollars to finance imports, particularly crude oil, following supply disruptions. The Strait of Hormuz has been effectively closed over the past two months after the US and Israel attacked Iran, pushing global crude prices up by over 60%. India's import bill is expected to rise sharply since the country imports over 85% of its domestic crude oil requirements. This is expected to widen India's current account deficit and put pressure on the balance of payments. 

 

In 2025-26 (Apr-Mar), gold imports increased to $71.98 billion from $58.01 billion in FY25.  End

 

US$1 = INR 95.62

 

Reported by Shreya Shetty and Sagar Sen

Edited by Saji George Titus

 

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