Gold, Silver Jewellery To Become Costlier As Govt Hikes Import Duty To 15% After PM Modi's Appeal

Buying gold and silver is set to become significantly more expensive. The central government on Wednesday hiked import duties on these precious metals from 6 per cent to 15 per cent to curb overseas purchases and ease pressure on the country's foreign exchange reserves following an appeal by Prime Minister Narendra Modi.

These new rates come into effect on May 13, 2026. As a result, prices for gold and silver are expected to rise, directly impacting both the market and consumers.

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Import Duty On Gold And Silver Hiked To 15%

The government has raised import duty on gold and silver to 15 per cent from 6 per cent. According to the notification issued by the Finance Ministry, the basic customs duty (BCD) has been increased from 5 per cent to 10 per cent, while the Agriculture Infrastructure and Development Cess (AIDC) has been increased from 1 per cent to 5 per cent.

Furthermore, gold imported from the UAE under a fixed quota will now attract higher duties, which previously enjoyed concessional rates.

Prices Of Gold, Silver Jewellery Set To Rise

The hike in import duty is expected to hit both the market and consumers. As import duties rise for bullion traders, this will be passed directly to the public, making gold purchases for weddings and long-term investments significantly more expensive.

Beyond the jewellery sector, industries that use precious metals in manufacturing, electronics, or recycling will also be affected.

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Gold Imports Continue To Rise

India's gold imports have seen a steady rise over the past few days. For the 2025-26 fiscal year, imports were projected to reach $71.98 billion, a 24 per cent increase from the $58 billion recorded in 2024-25. However, the actual volume of gold imported declined slightly during this period, from 757.09 tonnes to 721.03 tonnes.

India is the world's second-largest consumer of gold after China. Switzerland is the leading supplier, providing roughly 40 per cent of the country's gold, followed by the UAE and South Africa. Currently, gold accounts for more than 9 per cent of India's total imports, Jagran.com reported.

PM Modi's Appeal

Prime Minister Narendra Modi on Sunday urged citizens to limit spending on gold, foreign travel, and fuel. This appeal aims to ease pressure on the country's foreign exchange reserves and help maintain a stable economy.