India hikes import duty on gold, silver, platinum to 15% amid global uncertainty
Synopsis
India has more than doubled import duties on gold, silver, and platinum — from around 6% to 15% — citing the West Asia crisis and CAD pressure. The move is one of the sharpest precious metal duty hikes in recent memory, and a clear signal that New Delhi is prioritising forex conservation over consumer demand for discretionary imports.
Key Takeaways
Import duty on gold and silver raised from 6% to 15% ; platinum from 6.4% to 15.4% , effective 13 May 2025 .
The hike covers gold dore , silver dore , coins, findings, and other derivative products.
Government cites the West Asia crisis , crude oil price volatility, and Current Account Deficit (CAD) pressure as key drivers.
Precious metals are classified as non-essential, consumption-driven imports; forex reserves to be prioritised for crude oil , fertilisers , and capital goods .
Officials describe the measure as temporary and calibrated , not prohibitory or anti-consumer.
The Indian government has raised customs duty on precious metals — including gold, silver, and platinum — as part of a broader strategy to conserve foreign exchange, protect the current account, and strengthen macroeconomic resilience amid escalating global uncertainties, government sources said on Wednesday, 13 May. The move, effective immediately, marks the most significant upward revision in precious metal import duties in recent years.
What Changed: The New Duty Rates
Import duty on gold and silver has been raised from 6% to 15%, while duty on platinum has been increased from 6.4% to 15.4%. Consequential adjustments have also been applied to related items including gold dore, silver dore, coins, findings, and other derivative products. The across-the-board hike signals a unified policy stance rather than a targeted sectoral tweak.
Why the Government Acted Now
According to government sources, the trigger is the ongoing West Asia crisis, which has introduced significant volatility in global crude oil markets and disrupted international shipping routes. As a large crude oil importer, India remains exposed to elevated energy prices and supply-side shocks — pressures that can widen the Current Account Deficit (CAD) and stoke domestic inflation.
In this context, officials argue that India's foreign exchange reserves must be prioritised towards essential imports — crude oil, fertilisers, industrial raw materials, defence requirements, critical technologies, and capital goods — all of which directly underpin economic activity, food security, and national security. Precious metals, while culturally and financially significant, are described by sources as predominantly consumption- and investment-driven, with relatively lower linkage to productive industrial activity.
Government's Stated Rationale
Point of View
But potentially inflationary for domestic jewellery and bullion markets. India has been here before: the 2013 duty hike to 10% did compress the CAD but also triggered a surge in smuggling that took years to contain. The government's framing of precious metals as 'non-essential' glosses over their deep role in household savings, rural wealth storage, and the MSME jewellery sector. The real test is whether this is a short-term macro-stabilisation lever that gets unwound once the West Asia situation stabilises, or the beginning of a sustained protectionist tilt on discretionary imports.
NationPress
28 Jun 2026
Frequently Asked Questions
What are the new import duty rates on gold, silver, and platinum in India?
Import duty on gold and silver has been raised from 6% to 15%, while platinum duty has increased from 6.4% to 15.4%, effective 13 May 2025. The revised rates also apply to derivative products such as gold dore, silver dore, coins, and findings.
Why has India increased import duty on precious metals?
The government cited the ongoing West Asia crisis, which has caused crude oil price volatility and shipping disruptions, putting pressure on India's Current Account Deficit. Officials said forex reserves should be prioritised for essential imports like crude oil, fertilisers, and capital goods rather than consumption-driven precious metals.
Is the precious metals duty hike permanent?
Government sources have described the measure as a calibrated, proportionate response to extraordinary external conditions, implying it is temporary. However, no specific end date or sunset clause has been announced as of 13 May 2025.
How will the duty hike affect gold prices in India?
The near-doubling of the import duty rate is likely to raise the landed cost of gold and silver for jewellers and bullion traders, which could push up retail prices for consumers. It may also incentivise domestic scrap recovery and recycling activity.
Has India used import duty hikes on gold before?
Yes. India raised gold import duties sharply in 2013 to address a widening Current Account Deficit, eventually reaching 10%. That move reduced import volumes but also contributed to a rise in gold smuggling, a risk that analysts say is relevant again with the latest hike to 15%.
