13/05/2026
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13/05/2026
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NEW DELHI, May 13: India has sharply increased import duties on gold and silver to 15% from 6%, effective Wednesday (May 13, 2026), in a move aimed at curbing rising demand for precious metals, narrowing its widening trade deficit, and supporting the rupee, which has been under pressure near record lows.
The revised structure combines a 10% basic customs duty with a 5% Agriculture Infrastructure and Development Cess (AIDC), effectively more than doubling the earlier levy. Authorities are seeking to discourage overseas purchases and ease strain on foreign exchange reserves amid persistent currency volatility.
The policy comes as the Indian rupee has faced sustained weakness due to global uncertainty and elevated commodity imports. Following the announcement, the currency saw a modest recovery, trading at 95.61 against the U.S. dollar on May 13 after touching historic lows in earlier sessions.
Officials and analysts expect the higher duties to push up domestic prices of gold and silver, potentially cooling demand in one of the world’s largest consumer markets for precious metals. However, some market observers cautioned that the steep tax increase could also encourage smuggling activity, a recurring concern during periods of high import costs.
The decision also comes amid global geopolitical tensions that have boosted safe-haven demand for gold, even as New Delhi intensifies efforts to reduce bullion imports and strengthen its external financial position. Prime Minister Narendra Modi had previously called for reducing gold imports to conserve foreign exchange reserves, a stance now reflected in the latest policy shift.
