India raised the effective customs duty on gold and silver imports from ~6% to ~15%, restoring the Basic Customs Duty to 10% and lifting the Agriculture Infrastructure & Development Cess to 5% — a move set to push domestic bullion prices higher and pressure jewellery retailers in the near term.
Domestic prices rose even as international spot prices dipped — the duty hike, not global cues, drove the local move.
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India's gold imports hit an all-time high in value in FY26, up more than 24% on year — even as import volumes actually fell nearly 4.8% to ~721 tonnes, purely on higher prices.
Gold import growth in April 2026 alone (silver imports were up an even sharper 157.2% YoY), a key trigger cited in the government's own trade review.
Curbing bullion imports is aimed at narrowing the trade deficit and easing pressure on the rupee, one of Asia's worst-performing currencies through the West Asia war period.
India last pushed gold duty to a similar 15% level in 2022 during the Russia-Ukraine war; the 2024-25 Budget had cut it to ~6% to support the gems & jewellery trade and curb smuggling — this reverses that cut.