Days after the Prime Minister’s appeal to postpone gold buying for a year, the Finance Ministry has raised import duty on precious metals. New rates have been made effective from Wednesday.
According to a notification, import duty on gold and silver has been increased to 15 per cent from 6 per cent, and on platinum to 15.4 per cent from 6.4 per cent. Consequential changes have also been made to other items such as gold/silver dore, coins, findings, etc, officials said. “This has been done as a policy measure aimed at safeguarding macroeconomic stability, conserving foreign exchange, and moderating non-essential imports during a period of heightened global uncertainty arising from the ongoing West Asia crisis,” an official said.
Officials cite macroeconomic and external-sector considerations
Further, he said that customs duty on precious metals has historically been calibrated in response to prevailing macroeconomic and external-sector conditions. During periods when external pressures moderated, foreign exchange reserves strengthened, and macroeconomic stability improved, customs duty rates on precious metals and related products have also been rationalised downward.
In the Union Budget 2024–25, customs duties on gold and silver were reduced from 15 per cent to 6 per cent, and on platinum from 15.4 per cent to 6.4 per cent, “reflecting a more comfortable macroeconomic and external-sector position at the time. Therefore, historically such duty calibrations have remained responsive to evolving economic and external conditions,” the official said.
Move aimed at conserving forex and protecting current account
Another official explained that the current increase in import duty on precious metals is part of a broader strategy aimed at conserving foreign exchange, protecting the current account, prioritising essential imports, and strengthening India’s economic resilience amid evolving global uncertainties. “The measure represents a balanced, proportionate, and nationally responsible response to extraordinary external conditions while maintaining due regard for macroeconomic stability and long-term economic resilience,” he said.
The current geopolitical situation has created significant volatility in global crude oil markets and international shipping routes. As a large importer of crude oil, India remains vulnerable to elevated energy prices and supply-side disruptions, which can increase the import bill, exert pressure on inflation, and the Current Account Deficit (CAD). In such circumstances, prudent management of the country’s external sector becomes essential. Historically, customs duty adjustments have been used as one of several policy instruments to support macro-economic stability and effectively manage CAD-related pressures during periods of global volatility.
“India’s foreign exchange resources must therefore be prioritised towards essential imports such as crude oil, fertilisers, industrial raw materials, defence requirements, critical technologies, and capital goods. These imports directly support economic activity, food security, infrastructure, manufacturing, exports, and national security,” the second official said.
Government links move to broader economic discipline
He also explained that the latest measure is also aligned with the broader national economic discipline emphasised by the Prime Minister in the context of the evolving global situation. Citizens have been urged to reduce avoidable foreign expenditure, promote domestic alternatives, conserve fuel, and support national economic resilience through responsible consumption choices. In this broader context, “moderation in discretionary precious metal imports may be viewed as part of a wider collective effort to strengthen economic stability during a period of uncertainty,” he said.
Published on May 13, 2026