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India has raised import tariffs connected golden and metallic to 15% from 6%, authorities orders said connected Wednesday (May 13, 2026), arsenic portion of efforts to curb overseas purchases of the metals and easiness unit connected the country’s overseas speech reserves.
The higher duties could dampen request successful the world’s second-largest user of precious metals, though they whitethorn assistance constrictive India’s commercialized deficit and enactment the rupee, 1 of Asia’s worst-performing currencies.
However, manufacture officials warned higher import taxes could revive smuggling, which had eased aft India chopped tariffs successful mid-2024.
The authorities has imposed a 10% basal customs work and a 5% Agriculture Infrastructure and Development Cess (AIDC) connected golden and metallic imports, taking the effectual import taxation to 15% from 6%.
“As expected, the authorities has raised duties to curb the existent relationship deficit. However, this could impact demand, arsenic golden and metallic prices were already elevated,” said Surendra Mehta, nationalist caput astatine the India Bullion and Jewellers Association.
Prime Minister Narendra Modi connected Sunday (May 10, 2026) urged radical to avoid golden purchases for a year to assistance support overseas exchange reserves. India meets astir each of its golden depletion done imports.
Gold demand, peculiarly for concern purposes, has risen successful India amid a caller rally successful prices and antagonistic returns from equities implicit the past year.
Inflows into India’s golden exchange-traded funds (ETFs) surged 186% year-on-year successful the March 4th to a grounds 20 metric tons, the World Gold Council said past month.
India has been trying to curb golden imports successful caller weeks and began levying a 3% integrated goods and services taxation (IGST) connected golden and metallic imports, prompting banks to halt imports for much than a month.
As a result, April imports fell to a adjacent 30-year low. Banks person since resumed imports aft paying the 3% IGST, but imports are present apt to autumn again pursuing the increase successful import duties, bullion dealers said.
“Grey markets are apt to go active, arsenic the incentives to bring successful golden illegally are high. At existent terms levels, smugglers could marque important profits,” said a Mumbai-based bullion trader astatine a backstage bank, who declined to beryllium named arsenic helium was not authorised to speak to media.
