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India Raises Gold, Silver Import Tariffs To 15% To Curb Overseas Purchases
India raised import tariffs on gold and silver to 15% from 6% through a government order, applying 10% Basic Customs Duty plus 5% AIDC. The move aims to curb overseas purchases and ease forex reserves, potentially supporting the rupee but risking higher smuggling and weaker demand. The article also notes PM Modi's appeal to avoid gold purchases and provides context on IGST and ETF inflows.
Why It Matters
The tariff change targets reducing gold imports to ease the current account deficit and support the currency, with potential effects on domestic demand and smuggling risk.
Timeline
6 Events
Article published about tariff rise
May 13, 2026
The article reporting the tariff increase was published on May 13, 2026; it notes the government’s 15% import tax and related context.
Tariff increase announced: Gold and silver import taxes raised to 15%
May 12, 2026
The government issued orders raising import duties on gold and silver to a total of 15% (10% Basic Customs Duty plus 5% Agriculture Infrastructure and Development Cess), taking the effective tax from 6% to 15%. Industry officials warned the higher duties could revive smuggling and dampen demand.
Prime Minister Modi urges avoiding gold purchases for a year
May 10, 2026
Prime Minister Narendra Modi urged people to avoid gold purchases for a year to help protect foreign exchange reserves, noting that India meets almost all of its gold consumption through imports.
April 2026 imports fall to near 30-year low
April 2026
As a result of the 3% IGST, India's gold and silver imports in April fell to a near 30-year low. Banks had resumed imports after paying the IGST, but imports were expected to fall again following the tariff increase.
ETF inflows in March quarter 2026
March 2026
Inflows into India's gold exchange-traded funds (ETFs) surged 186% year-on-year in the March quarter to a record 20 metric tons, according to the World Gold Council.
Earlier move: India began levying 3% IGST on gold and silver imports
2024
The government began levying a 3% integrated goods and services tax (IGST) on gold and silver imports, prompting banks to halt imports for more than a month.