NEW DELHI: India has reportedly increased import duties on gold and silver to 15% from 6%, according to media reports, in a move aimed at curbing bullion imports and easing pressure on foreign exchange reserves.
The decision comes amid concerns over rising precious metal imports and their impact on the trade balance and current account deficit. Economists said the higher tariffs could help narrow the trade gap and support the rupee, which has weakened against major global currencies in recent months.
The move follows Prime Minister Narendra Modi’s recent appeal urging citizens to avoid non-essential gold purchases for a year in the national interest, especially as tensions in the Middle East continue to affect global markets and energy supplies.
According to reports, India’s gold imports have risen sharply over the past three years, driven largely by higher international prices. Data cited by the Global Trade Research Initiative (GTRI) showed gold bar imports increased from $36.5 billion in 2022 to $58.9 billion in 2025.
India, the world’s second-largest gold consumer after China, recorded gold imports worth nearly $72 billion in 2025-26, up more than 24% from the previous year, though import volumes declined due to rising prices.
The GTRI said higher bullion imports were adding pressure on India’s foreign exchange reserves and external finances. The think tank also urged the government to review tariff concessions under the India-UAE free trade agreement, saying lower duties had encouraged higher imports from Dubai.
Gold accounts for more than 9% of India’s total imports. Switzerland remains India’s largest supplier, followed by the United Arab Emirates and South Africa.
Union minister Ashwini Vaishnaw also urged citizens to reduce import-related spending to conserve foreign exchange reserves amid continuing uncertainty in the Middle East.
