New Delhi: The central government has sharply increased import duties on gold, silver and several other precious metal products, a move expected to push up domestic prices and discourage large-scale overseas purchases.
According to a fresh notification issued by the Finance Ministry on Wednesday, the effective import tax has been raised from 6 per cent to 15 per cent. The revised structure includes a 10 per cent basic customs duty along with a 5 per cent Agriculture Infrastructure and Development Cess (AIDC).
The new duty rates came into effect from May 13 and will apply to imports of gold, silver, platinum, jewellery parts and certain industrial products linked to precious metals.
Officials said the decision is aimed at reducing pressure on India’s foreign exchange reserves by limiting excessive imports of high-value precious metals. The step is also expected to help regulate the country’s trade deficit, as gold imports contribute significantly to overall import expenditure.
The revised customs framework also impacts imports arriving from the United Arab Emirates under the fixed-quantity quota mechanism. These imports had earlier benefited from concessional duty rates, but will now attract higher charges.
The notification, issued by the Department of Revenue under the Customs Act, updates earlier customs provisions introduced in 2018 and 2021.
Changes have also been made to duty rates on jewellery findings — small components used in ornament manufacturing such as clasps, hooks, pins and screw backs. Gold and silver findings will now attract a 5 per cent customs levy, while platinum-based findings will face a 5.4 per cent duty.
Industry experts believe the hike could lead to a rise in retail jewellery prices in the short term and may affect demand, particularly during festive and wedding seasons.
Traders and jewellery manufacturers are closely monitoring the market response, as the higher import burden is expected to influence pricing strategies and consumer buying patterns in the coming weeks.
