India does not plan to increase duties on gold and silver imports despite concerns about rising import bills and dwindling foreign exchange reserves, a government official said on Monday.
On Sunday, Prime Minister Narendra Modi asked people to avoid buying gold for a year to help the country save foreign currency as it tries to deal with the effects of the prolonged US-Israel war with Iran.
The PM’s statement resulted in speculations that the government may increase the import duties on gold and silver to discourage its imports now that elections in key States, including West Bengal and Tamil Nadu, are over.
Current duty
But government officials tracking the matter denied that there were any plans of raising import duties on either gold or silver. Currently, import of gold in all forms attracts a 6 per cent duty, including 5 per cent basic customs duty (BCD) and 1 per cent agriculture infrastructure and development cess (AIDC).
On silver, there is a total import duty of 6 per cent for eligible Indian residents.
The Indian PM’s appeals to avoid gold purchases for a year in the national interest must be supported as imports are hurting India’s foreign exchange reserves and trade balance, according to Ajay Srivastava from GTRI.
However, the government must review its Free Trade Agreement (FTA) policies, especially tariff concessions on precious metals offered to Dubai under the India-UAE trade deal, a GTRI analysis noted. The FTA has significantly contributed to the recent surge in gold imports, it said.
India’s gold bar imports have risen sharply from $36.5 billion in 2022 to $58.9 billion in 2025, per the analysis.
Published on May 11, 2026