India Raises Gold and Silver Import Duty to 15% to Support Rupee

India has increased import duties on gold and silver from 6% to 15% in a significant policy move aimed at controlling overseas purchases and strengthening the Indian rupee amid growing pressure on foreign exchange reserves.

According to government notifications cited in recent reports, the revised structure includes a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC), bringing the effective import tax on precious metals to 15%.

The decision is expected to impact demand in India, one of the world’s largest consumers of gold and silver. Analysts believe the higher tariffs may help reduce the country’s trade deficit by limiting imports, while also supporting the rupee, which has remained under pressure against major global currencies in recent months.

Market experts noted that rising imports of precious metals contribute significantly to India’s import bill, especially during periods of high consumer demand and festive buying seasons. By increasing duties, the government aims to control excessive inflows and preserve foreign exchange reserves.

However, industry representatives have expressed concerns regarding the potential return of illegal smuggling activities. Officials from the bullion and jewellery sector warned that higher import taxes could encourage unofficial channels for gold movement into the country, reversing improvements seen after tariff reductions introduced in 2024.

The policy announcement is expected to influence domestic bullion prices, jewellery demand, and broader market sentiment across India’s precious metals industry in the coming weeks.