India Hikes Gold & Silver Import Duty to 15% to Ease Forex Pressure

In a significant policy move, the Government of India has raised import duties on precious metals to curb rising foreign exchange pressure.

The duty on gold and silver has been increased from 6% to 15%, while platinum now attracts 15.4% duty, up from 6.4%.

The revised structure includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC).

Officials explained that the decision aims to discourage non‑essential imports and stabilise India’s forex reserves amid global uncertainty triggered by the West Asia conflict.

Prime Minister Narendra Modi has also appealed to citizens to avoid non‑essential gold purchases for a year, stressing the need for national austerity.

Despite higher duties, India’s appetite for gold remains strong.

Gold ETFs saw inflows surge 34% in April, rising to Rs 3,040 crore from Rs 2,265 crore in March.

In contrast, silver ETFs recorded outflows for the third consecutive month, with investors pulling Rs 126 crore in April.

This duty hike underscores the government’s balancing act between consumer demand and macroeconomic stability, reinforcing gold’s role as a preferred investment even in challenging times.