India raises gold, silver import tariffs to 15%; revises customs duty on precious metal findings

India has raised import tariffs on gold and silver to 15%, reversing the 2024 duty cuts, as the government moves to curb surging precious metal imports, narrow trade deficit and support the rupee amid mounting external pressures.

The finance ministry notified the changes through multiple customs notifications on 12 May. The revised rates came into effect on 13 May.

According to notifications, the government has increased the basic customs duty on several categories of gold and silver imports to 10% from 5%, while the Agriculture Infrastructure and Development Cess (AIDC) of 5% continues, taking the total effective import tax to 15%.

Separately, the Finance Ministry also revised customs duty rates for precious metal findings and recyclable precious metal waste through Notification No. 16/2026-Customs. Under the revised structure, gold and silver findings will attract a 5% customs duty, while platinum findings will face a 5.4% duty. Imports of spent catalysts or ash containing precious metals will attract a concessional 4.35% duty, subject to compliance conditions and recycling-related clearances, according to the notification.

The revised duties apply to gold, silver, platinum findings, precious metal ash and spent catalysts containing precious metals, according to the notifications issued by the Department of Revenue.

Bullion imports, trade deficit concerns drive tariff overhaul

The move comes as India faces pressure on its current account deficit and currency due to rising crude oil prices and increased bullion imports. Reuters reported that India’s rupee has been among Asia’s weakest-performing currencies this year and recently hit a record low against the dollar.

According to Reuters, India had reduced import duties on gold and silver to 6% from 15% in July 2024 in an attempt to curb smuggling and support the gems and jewellery sector. The latest decision effectively restores the earlier higher-duty structure.

India is the world’s second-largest consumer of gold and the largest importer of silver, relying almost entirely on overseas supplies to meet domestic demand. Reuters also said the government believes higher duties could reduce imports and ease pressure on foreign exchange reserves.

The tariff hike follows a series of developments in the bullion market over the past few months. Reuters had earlier said that Indian banks temporarily halted gold and silver imports in April after delays in government authorisation orders, leaving several tonnes of bullion stuck at customs. Separately, banks had also paused imports after authorities began enforcing a 3% Integrated GST levy on bullion shipments.

Data cited by Reuters showed India’s gold imports surged sharply earlier this year, contributing to a widening trade deficit. Reuters reported that gold imports in 2025 rose 1.6% year-on-year to $58.9 billion, while silver imports climbed 44% to $9.2 billion. A TOI report said gold imports jumped to nearly $12 billion in January 2026 alone, pushing India’s trade deficit to a three-month high.

Prime Minister Narendra Modi had recently urged citizens to avoid non-essential gold purchases for a year to help conserve foreign exchange reserves amid rising oil prices linked to geopolitical tensions in West Asia.

Industry executives quoted by Reuters warned that while higher tariffs may reduce official imports, they could also revive smuggling, which had eased after the 2024 duty cuts.