India’s increased import duties on gold, silver, and platinum have generated over ₹10,463 crore, amid efforts to curb smuggling and protect foreign exchange reserves, marking a significant shift in the country’s import policy.
India’s higher import duties on precious metals have brought an unexpected windfall for the exchequer, with customs collections from gold, silver and platinum topping ₹10,463 crore between May 13 and August 2, according to written answers tabled in the Lok Sabha by finance state minister Pankaj Chaudhary. Gold accounted for the bulk of the take, contributing ₹10,040 crore, while silver brought in ₹328 crore and platinum ₹95 crore.
The duty increase took effect on May 13, when the government raised import tax on gold and silver to 15% from 6%, and on platinum to 15.4% from 6.4%. The changes also covered related items such as dore, coins and findings. The Indian Express reported that the move was designed to curb non-essential imports and preserve foreign exchange for items seen as more critical, including crude oil, fertiliser, industrial raw materials and capital goods, at a time of concern over tensions in West Asia and possible disruption around the Strait of Hormuz.
The same parliamentary reply said customs officials seized 161 kg of smuggled gold and arrested 116 people between May 13 and June 30. India is the world’s second-largest consumer of gold after China, and jewellery demand makes up a large share of imports, leaving the metal a significant part of the country’s import bill.
The latest figures sit within a broader pattern of tighter controls on precious-metal imports. Economic Times reported that in 2023-24 India bought gold from 48 countries, with duties varying under most-favoured nation rates and free-trade agreements. It said imports from the United Arab Emirates are allowed at lower rates only up to a quota of 160 tonnes, while other trade pacts can reduce duties to zero. Economic Times also reported that the government raised duties on silver in the 2023 Union Budget and later lifted the levy on gold and silver coins and findings to 15%, reinforcing the policy shift that helped generate the recent revenue surge.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
