Government Raises Import Duties on Gold, Silver, and Platinum

Thursday, May 14, 2026

India's government raised import duties on gold, silver, and platinum from 6% to 15%, causing sharp increases in domestic prices as a measure to conserve foreign exchange amid rising costs of essential imports. This move aims to stabilize the country's macroeconomic situation by curbing precious metal imports, which surged 26.7% to $102.5 billion in the previous fiscal year, but it may also affect consumer demand and market trends locally.

India’s government has increased import duties on gold, silver, and platinum, prompting a sharp rise in local market prices. On Wednesday, the import tariff on these precious metals was raised from 6% to 15%, a move aimed at conserving foreign exchange amid rising costs for essential imports such as crude oil and fertilizers.

Following the announcement, gold prices surged significantly in domestic markets. In Mumbai’s Sarafa Bazaar, the price of gold jumped by ₹9,345 per 10 grams, closing at ₹1,60,977. Similarly, silver prices climbed by ₹22,853 per kilogram to reach ₹2,87,720. In Delhi, gold prices increased by ₹8,550 to surpass ₹1.65 lakh per 10 grams, while silver prices rose ₹20,500, reaching ₹2,97,500 per kilogram, all inclusive of taxes, according to the All India Sarafa Association.

In contrast to domestic trends, the global spot price of gold declined by 0.3% to settle at $4,700.86 per ounce, while silver prices rose 1% to $87.45 per ounce. Brent crude oil traded above $107 per barrel on international markets.

The government justified the tariff hike by emphasizing the necessity of conserving foreign exchange reserves, particularly in light of rising import bills for essential commodities. Precious metals imports are largely viewed as non-essential, with India being the world’s second-largest consumer of such metals, primarily driven by demand for investment and jewelry.

During the fiscal year 2025-26, imports of gold and silver surged by 26.7%, reaching $102.5 billion. Officials indicated that the increased import duties are a strategic step to strengthen the country’s macroeconomic stability and improve foreign currency management. However, such measures could also impact consumer demand and market dynamics in the domestic precious metals sector.