Representational Image (IANS)
New Delhi: Two days after Prime Minister Narendra Modi urged citizens to avoid non-essential purchase of gold to help conserve foreign exchange amid the West Asia crisis, the Central government has more than doubled its import duty on gold, silver and other precious metals from six percent to 15 percent.
The revised duty structure, which came into effect from Wednesday (May 13), includes a 10 percent Basic Customs Duty (BCD) and a five percent Agriculture Infrastructure and Development Cess (AIDC).
As per a notification of the Finance Ministry, India has raised import tariffs on gold and silver to 15 percent from 6 percent and also revised the Social Welfare Surcharge (SWS) and AIDC on precious metal imports as part of efforts to curb overseas purchases of the metals and ease pressure on the country’s foreign exchange reserves.
The move comes amid concerns over India’s rising import bill due to the ongoing West Asia crisis and increasing pressure on foreign exchange reserves.
Speaking at a public rally in Hyderabad earlier this week, PM Modi had appealed to people to reduce fuel consumption, use public transport, postpone gold purchases and avoid unnecessary foreign travel to help conserve foreign exchange during the crisis.
As per sources, India’s gold imports rose more than 24 percent to a record USD 71.98 billion in 2025-26, even though import volumes slightly declined to 721.03 tonnes.
Gold prices have also surged sharply over the last few months. In Delhi, gold prices jumped Rs 1,500 on Tuesday to reach Rs 1,56,800 per 10 grams, while silver prices rose Rs 12,000 to Rs 2,77,000 per kilogram.
Notably, the government had reduced customs duty on gold to six percent in the 2024-25 Budget to support the gems and jewellery industry and curb smuggling. However, with the worsening geopolitical situation in West Asia and pressure on the rupee, the Centre has now reversed that decision.
India had similarly increased gold import duty to 15 percent in 2022 during the Russia-Ukraine war to control the current account deficit and stabilise the rupee.
Chief Economic Advisor V Anantha Nageswaran on Tuesday described the ongoing West Asia conflict as a “live balance of payments stress test” for India, warning of its impact on inflation, the rupee and the country’s import bill.
The Indian rupee had touched a record low of 95.63 against the US dollar on Tuesday.
Also Read: