Government Doubles Gold, Silver Import Duty to 15% Amid Forex Pressure and West Asia Crisis

The Centre has sharply increased import duties on gold and silver to 15 per cent in a major move aimed at curbing non-essential imports and protecting India’s foreign exchange reserves amid the ongoing West Asia crisis. The revised duties came into effect from May 13 following notifications issued by the Central Board of Indirect Taxes and Customs (CBIC) through Notifications No. 15/2026, 16/2026 and 17/2026 on May 12.

Under the earlier structure, imports of gold and silver attracted 5 per cent Basic Customs Duty (BCD) and 1 per cent Agriculture Infrastructure and Development Cess (AIDC), taking the customs levy to 6 per cent. With the addition of 3 per cent Integrated GST (IGST), the effective import duty stood at 9.18 per cent.

The government has now doubled the BCD from 5 per cent to 10 per cent and increased the AIDC from 1 per cent to 5 per cent. As a result, the total customs levy has risen to 15 per cent, while the effective import duty including IGST has surged to 18.45 per cent.

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Platinum imports have also been affected, with import duty increased from 6.4 per cent to 15.4 per cent. Consequential changes have also been made for gold and silver dore, coins and related products.

The decision was taken to reduce discretionary imports and ensure foreign exchange is prioritised for essential imports such as crude oil, fertilisers, industrial raw materials and capital goods that support economic activity and food security. The measure is a precaution against potential external shocks amid extraordinary global conditions.

The move follows Prime Minister Narendra Modi’s recent appeal for austerity measures, including restraint in gold purchases, to reduce avoidable foreign exchange expenditure.

According to think tank Global Trade Research Initiative (GTRI) India’s precious metal imports have risen sharply in FY2026. Gold imports touched nearly USD 72 billion, around 25 per cent higher than the previous year, while silver imports crossed USD 12 billion, recording a massive 150 per cent annual increase.

The higher duty immediately impacted markets. On the Multi Commodity Exchange (MCX), gold futures for June delivery jumped by more than 6 per cent, to Rs 1.6 lakh per 10 grams. Silver prices surged nearly 7 per cent and approached the Rs 3 lakh per kilogram mark. Jewellery stocks are also under pressure for the last three years .