Home / Business and Economy / India Denies Gold, Silver Import Duty Hike Amidst PM's Plea
India Denies Gold, Silver Import Duty Hike Amidst PM's Plea
12 May
Summary
- Government official stated no plans to raise gold and silver import duties.
- PM Modi urged citizens to avoid purchasing gold for one year.
- India's gold imports rose 24.1% to $72 billion in FY26.
A government official announced on Monday that India has no immediate plans to raise import duties on gold and silver. This declaration comes shortly after Prime Minister Narendra Modi encouraged citizens to postpone gold purchases for a year, citing economic concerns. India, a major global consumer of gold and the largest for silver, relies heavily on imports to meet its substantial domestic demand.
Despite gold imports reaching $72 billion and silver imports $12.1 billion in FY26, contributing significantly to the nation's trade deficit, the government is not considering an increase in duties. The gold trade had expressed fears that a duty revision could encourage smuggling and impact business, with projections of a potential 15% decline. Jewellery stocks, including Titan, Kalyan Jewellers, and Senco Gold, saw significant drops following the Prime Minister's remarks.
Industry stakeholders suggest mobilizing the estimated 20,000 tonnes of dormant household gold through initiatives like a revitalized Gold Monetisation Scheme. The Indian gold industry was valued at ₹7,51,490 crore in 2025. Some predict that if demand reduces by 25-50%, it could ease pressure on foreign exchange reserves and stabilize the rupee. A similar economic situation in 2012-2013 led to measures like the 80:20 rule and increased import duties.
