13 - 05 - 2026

India hikes import duties on precious metals amidst West Asia crisis

India has sharply raised customs duties on imports of gold, silver and platinum in a bid to safeguard foreign exchange reserves, heightened by the global uncertainty stemming from the West Asia crisis.

The Ministry of Finance announced late Tuesday that the effective import tax on gold and silver has been hiked to 15%, up from 6%, through a combination of a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC).

Platinum imports will now attract a 15.4% levy, compared with 6.4% earlier.

Earlier on Tuesday, Jefferies said in a report that customs duty on gold, which was reduced to 6% from the earlier 15%, could be increased again.

The move is slated to push up domestic prices of gold and silver, with jewellers and bullion traders warning of reduced demand in the short term.

According to analysts, the decision was a policy measure aimed at safeguarding macroeconomic stability, conserving foreign exchange and moderating non-essential imports.

India is the world’s second-largest consumer of gold after China, with imports typically accounting for the bulk of domestic supply.

In an address earlier, PM Modi urged households to adopt austerity measures and avoid buying gold jewellery for one year.