The Centre has revised customs duty rates on several categories linked to imports of gold, silver and other precious metals through a Finance Ministry notification issued on Wednesday.
The government has increased the import duty on gold and several other precious metals, a move expected to make imports costlier. The revised duty structure will take effect from May 13, 2026, with the higher levy applicable to gold, silver, platinum, jewellery findings and precious metal-related industrial imports.
The government has imposed a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports, taking the effective import tax to 15% from 6%, as the Centre seeks to curb overseas purchases of precious metals and reduce pressure on foreign exchange reserves.
The government has also increased the import duty on gold imported from the United Arab Emirates under the fixed-quantity quota system, which earlier enjoyed concessional duty rates.
Issued by the Department of Revenue under the Customs Act, the notification amends earlier customs notifications issued in 2018 and 2021.
The notification also revises duty rates on jewellery “findings” — small components such as hooks, clasps, clamps, pins and screw backs used in jewellery manufacturing. Gold and silver findings will now attract 5% customs duty, while platinum findings will attract 5.4%.
The government has also modified concessional duty provisions for imports of spent catalysts or ash containing precious metals meant for recovery and recycling. Such imports will attract a concessional customs duty of 4.35%, subject to specified compliance conditions.
Meanwhile, as tensions continue to rise in West Asia, Prime Minister Narendra Modi has appealed to citizens to adopt austerity measures, including postponing gold purchases and reducing foreign travel, as the government seeks to protect the economy from the fallout of the conflict.
Emphasising the need for caution, Modi on Sunday urged people to use fuel judiciously and avoid unnecessary spending in order to strengthen the country's economic position.
India's soaring gold imports have now come under focus. The country's gold imports rose more than 24% to a record $71.98 billion in 2025-26, compared to $58 billion in 2024-25. Imports stood at $45.54 billion in 2023-24 and $35 billion in 2022-23.
However, in volume terms, gold imports fell 4.76% to 721.03 tonnes in 2025-26 from 757.09 tonnes in the previous fiscal year.
India remains the world's second-largest consumer of gold after China, with demand largely driven by the jewellery sector. Gold is traditionally considered a safe-haven asset, and demand typically rises during periods of geopolitical uncertainty.
According to the commerce ministry, the sharp jump in imports was mainly due to rising prices. Gold prices increased from $76,617.48 per kilogram in FY25 to $99,825.38 per kilogram in FY26. In the national capital, prices are currently hovering around Rs 1.5 lakh per 10 grams after crossing the Rs 1 lakh mark for the first time in April last year.
Higher imports of the precious metal have also increased pressure on India's trade deficit and foreign exchange reserves. The country's trade deficit widened to $333.2 billion during 2025-26.
The surge in imports has also affected India's current account deficit (CAD). According to Reserve Bank of India data released on March 2, India's CAD rose to $13.2 billion, or 1.3% of GDP, in the December quarter, up from $11.3 billion a year earlier, largely due to a higher trade deficit.
Gold accounts for more than 9% of India's total imports, which stood at $775 billion in 2025-26.
Switzerland remains India's largest source of gold imports with nearly a 40% share, followed by the United Arab Emirates at over 16% and South Africa at around 10%.
