India Hikes Import Duty on Gold, Silver, Precious Metal Coins to 15%
Effective April 3, 2026, India has increased the import duty on gold, silver, and precious metal coins to 15% to address rising imports and stabilize the rupee.
The **import duty hike on gold silver** and precious metal coins to 15% has been implemented by the Indian government to address concerns over surging imports and stabilize the rupee. The decision, which took effect on April 3, 2026, was issued by the Central Board of Indirect Taxes and Customs (CBIC). This move comes in response to a significant increase in gold and silver imports in 2025, with gold imports rising by 1.6% to $58.9 billion and silver imports jumping by 44% to $9.2 billion. These rising imports have widened the trade deficit and put pressure on the rupee, which recently hit a record low. The government views the demand for gold, primarily used for jewellery and investment, as non-essential and aims to curb it by making the metal more expensive for buyers. The increased duty is expected to impact bullion traders, jewellers, and consumers, potentially leading to higher prices.
This action is taken under Section 14(2) of the Customs Act, 1962, which empowers the CBIC to set tariff values for imported goods. The legal issue revolves around the valuation of imports and the applicable duty rates, impacting the cost of importing gold and silver and requiring adjustments to customs declarations.
This duty hike reflects the government's ongoing struggle to balance its trade deficit and currency stability with the demand for precious metals. While it may curb imports to some extent, it also risks incentivizing smuggling and could lead to increased premiums on gold and silver, ultimately affecting consumers.
The duty hike aims to curb rising gold and silver imports, which have widened the trade deficit and weakened the rupee, impacting the overall economy.