The Central Government has increased import duties on gold, silver, platinum, jewellery parts and industrial imports linked to precious metals, with the revised rates coming into effect from May 13, 2026.
Under the revised structure, the government has imposed a 10 percent Basic Customs Duty and a 5 percent Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports. Following the revision, the total import duty on these metals has increased from 6 percent to 15 percent.
Market participants expect the revised import duty to result in an immediate increase in domestic gold and silver prices. According to experts, silver prices could rise by nearly ₹27,700 per kilogram, while gold prices may increase by around ₹15,680 per 10 grams. The projected increase reflects the combined impact of international market prices and the higher import duty.
Bullion prices had already shown gains ahead of the implementation of the revised duty structure. According to the All India Sarafa Association, 99.9 percent purity gold in the Delhi bullion market closed ₹1,500 higher at ₹1,56,800 per 10 grams on May 12. Silver prices rose ₹12,000 to ₹2,77,000 per kilogram.
Analysts said prices could increase further after the revised import duty takes effect. Estimates indicate that gold prices could reach nearly ₹1,72,480 per 10 grams, while silver prices may approach ₹3,04,700 per kilogram. Actual market prices, however, will depend on demand, global market trends and currency exchange rates after trading resumes.
Experts said the government’s decision is aimed at controlling the rising import bill and managing the current account deficit. India is among the world’s largest importers of gold, with substantial volumes of gold and silver imported annually, increasing pressure on foreign exchange reserves.
According to experts, the higher import duty is intended to reduce non-essential imports, moderate domestic demand and help narrow the trade deficit. The revised duty structure is expected to increase costs for consumers, as India’s jewellery industry is largely dependent on imported gold and silver. Traders and jewellers are expected to pass on the higher costs to buyers.
