The government on Wednesday increased import duties on gold and silver to 15%, a sharp hike aimed at curbing non-essential imports amid external pressures linked to the Middle East crisis and its impact on foreign exchange reserves. Effective May 13, the duty on gold and silver has been raised from 6%, while the levy on platinum has been increased from 6.4% to 15.4%.
The move also includes corresponding revisions to duties on related products such as gold and silver dore, coins and findings. The decision follows closely on Prime Minister Narendra Modi's call for restraint in gold purchases and broader austerity measures to reduce avoidable foreign exchange spending.
India, the world's second-largest consumer of gold after China, imports significant volumes of the precious metal to meet jewellery industry demand, resulting in substantial forex outflows.
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The following are the 24k, 22k gold rates at 2:00 p.m.
| City | Gold 24k (10 Gram) | Gold 22 K (10 Gram) | Silver 999 Fine (1 kg) |
| Mumbai | 1,63,000 | 1,49,417 | 2,96,690 |
| Delhi | 1,62,270 | 1,48,748 | 2,95,380 |
| Kolkata | 1,62,620 | 1,49,068 | 2,96,780 |
| Chennai | 1,63,250 | 1,49,646 | 2,97,450 |
| Bangalore | 1,62,910 | 1,49,334 | 2,96,820 |
| Hyderabad | 1,63,040 | 1,49,453 | 2,96,360 |
According to the government said the import duty increase is a "preventive measure" amid "extraordinary external conditions" and a signal of prudent economic governance. It reflects India's proactive response to emerging external risks through targeted interventions, thereby reducing the need for more disruptive corrective measures at a later stage.
The increase in customs duty on precious metals is intended to moderate avoidable import demand and ease pressure on the external account, sources said, adding that it is a "calibrated and proportionate intervention" designed to encourage moderation in non-essential imports at a time when external vulnerabilities remain elevated.
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