The Centre has doubled the import duty levied on gold, silver and platinum to 10%, with effect from the midnight of May 13, according to an official notification issued on Tuesday.
The move is set to make precious metals costlier, as they had currently been attracting an import duty of 5%. The development comes two days after Prime Minister Narendra Modi appealed to the citizens to defer their gold purchases, as the country's foreign exchange reserves have come under strain due to the West Asia conflict.
Apart from gold, silver and platinum, duties have also been raised on jewellery findings, and precious metal-related industrial imports, as per the notification issued by the Department of Revenue under the Customs Act.
Jewellery findings, or the small components such as hooks, clasps, clamps, pins and screw backs, will attract a customs duty of 5% in cases of gold and silver, whereas platinum findings will be charged with a 5.4% levy.
New regulations have adjusted the import duties for spent catalysts and ash containing precious metals. In a move likely aimed at encouraging recovery and recycling, these materials now qualify for a reduced customs rate of 4.35%, provided they meet specific compliance and regulatory requirements.
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On Sunday, while addressing a public gathering in Hyderabad, Modi urged the country to pause gold purchases for a year, to help support the country's forex. "I would appeal to people not to buy gold for weddings for one year," he said, adding, "In the current situation, we must place great emphasis on saving foreign exchange."
Notably, India is the world's second-largest importer of gold, after China. In financial year 2025-26 (FY26), India's gold imports rose over 24% to hit a record $71.98 billion. In comparison, the yellow metal imports stood at $58 billion in FY25, $45.5 billion in FY24, $35 billion in FY23, $46.1 billion in FY22, and $34.62 billion in FY21.
Gold, long seen as a safe-haven asset, also has a traditional appeal among Indian buyers. The purchases, at the retail level, peak during festivals and wedding season.
As per the commerce ministry data, gold accounted for 9% of India's total imports in FY26. The biggest supplier is Switzerland with a 40% share, followed by the UAE at about 16% and South Africa at nearly 10%.
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