Gold Just Got Costlier: India’s 15% Import Duty Shock Hits Buyers, Rupee And Jewellers

India has made gold and silver imports costlier to cut dollar outflow as West Asia tensions push oil bills and rupee pressure higher.

Key Takeaways
 

1. India has raised gold and silver import duty from 6% to 15% to reduce overseas purchases, protect forex reserves and support the rupee.
    
2. Earlier, the government capped duty-free gold imports under Advance Authorisation at 100 kg per licence and tightened compliance checks.

Why India Has Hit Gold And Silver Imports Now?

India has increased the effective import tax on gold and silver to 15%, with 10% basic customs duty and 5% Agriculture Infrastructure and Development Cess. The move was reported by Reuters on 12 May 2026 and by NDTV on 13 May 2026. It is aimed at reducing non-essential imports and easing pressure on foreign exchange reserves.

In the short term, jewellery, coins and bars can become costlier for buyers. In the long term, the government hopes lower bullion imports will reduce dollar demand. The negative effect is that high duty can push some trade into unofficial channels, especially when gold prices are already high.

The Big Numbers Behind The Gold Import Clampdown

Before the latest duty hike, India was already dealing with a wider import bill. The pressure grew because crude oil prices and West Asia tensions added stress to India’s external finances.

These numbers show why bullion has come under policy focus. India cannot cut essential oil imports quickly, but it can try to slow discretionary gold and silver purchases.

How This Price Push Will Hit Indian Buyers?

For households, the first hit will be higher jewellery prices during weddings, festivals and investment buying. India is the world’s second-largest gold consumer, and Reuters reported on 13 May 2026 that higher tariffs may not sharply reduce demand because gold remains deeply linked with savings and tradition.

There is also a loan impact. LoansJagat reported in April 2026 that gold loans are rising again, while stress signs are also visible among repeat borrowers. If gold prices stay high, borrowers may get higher loan value, but repayment pressure can rise for families using gold to meet urgent expenses.

What Changed Earlier In Gold Import Rules?

The import duty hike was not the only step. On 14 May 2026, the government capped gold imports under Advance Authorisation at 100 kg per licence. Times Of India reported that the Directorate General of Foreign Trade also tightened compliance and monitoring norms for importers in the gems and jewellery sector. 

NDTV reported on 14 May 2026 that India’s gold imports rose more than 24% to an all-time high of $71.98 billion in 2025-26. Another NDTV report said gold imports rose from $9.7 billion in 2016-17 to nearly $68.9 billion in 2025-26, while silver imports rose to over $11.4 billion.