Gold, silver import duty hiked to 15%: Key changes in India's customs structure explained

The government on Wednesday raised import duties on gold and silver to 15%, reversing a tax cut introduced less than two years ago, as it seeks to conserve foreign exchange amid a widening import bill triggered by the West Asia crisis.

Under the revised rates, the basic customs duty on gold and silver has been increased to 10% from 5%.

The Finance Ministry, in separate notifications, also hiked the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC), raising the overall customs duty on gold to 15%.

The move follows Prime Minister Narendra Modi's appeal earlier this week for households to postpone gold purchases and cut discretionary foreign exchange spending, including overseas travel, to help the country cope with higher oil and fertiliser costs.

The hike effectively reverses the customs duty reduction announced in the Union Budget for 2024-25, when the government had lowered the import tax to 6% to support the domestic gems and jewellery industry, reduce local prices and discourage smuggling.

India had earlier raised import duties on gold to 15% in 2022 to contain the current account deficit and support the rupee after the outbreak of the Russia-Ukraine War.

India is the world's second-largest gold consumer after China, and imports most of its bullion requirements to meet demand from the jewellery sector.

India saw gold imports surge 24% to a record USD 71.98 billion in 2025-26, even as import volumes declined 4.76% to 721.03 tonnes.

The average price of imported gold rose to USD 99,825.38 per kg in FY26 from USD 76,617.48 per kg in the previous financial year.

Domestic gold prices climbed to ₹156,800 rupees per 10 grams in New Delhi on Tuesday, while silver rose to ₹277,000 per kilogram.

The duty changes also cover precious metal findings and recyclable waste.

• Gold and silver findings will attract 5% customs duty.

• Platinum findings will attract 5.4% duty.

• Spent catalysts, ash and residues containing precious metals meant for recycling will attract a concessional 4.35% duty, subject to compliance with specified conditions and recycling-related clearances.

The government has been grappling with a surge in energy costs after disruptions to shipping through the Strait of Hormuz, a key route for India's crude oil and liquefied petroleum gas imports.

Chief Economic Adviser V. Anantha Nageswaran said on Tuesday that the West Asia conflict was a "live balance of payments stress test" with implications for inflation, the current account and the exchange rate.

The Indian rupee fell to a record low of 95.63 per US dollar on Tuesday.