India’s recent increase in import duties on gold, silver, and platinum has significantly impacted demand, with official data revealing a 6% decline in gold consumption and increased government revenue through customs, as authorities tighten import controls amid volatile global prices.
India’s higher duties on gold, silver and other precious metals have already brought in additional revenue for the central government, with Finance Ministry figures showing the revised rates took effect on May 13, 2026. Minister of State for Finance Pankaj Chaudhary told Parliament the move was part of a broader effort to restrain imports at a time of volatile global prices and pressure on foreign exchange reserves.
Chaudhary said 160.91 kg of gold was seized between May 13 and June 30, during which officials filed 287 cases and arrested 116 people. He also told the Lok Sabha that the government does not keep data on how much gold may be lying idle in households across the country.
The duty rise formed part of a wider tightening of precious-metal imports. According to the Finance Ministry notifications cited by Indian trade publications, the effective customs duty on gold and silver was lifted to 15% from 6%, while platinum duty was also increased. The Directorate General of Foreign Trade separately moved silver into a restricted category, so importers now need a licence, and capped duty-free gold imports under the advance authorisation scheme at 100 kg per licence.
The impact has been visible in demand. The World Gold Council said India’s gold consumption fell 6% year on year to 131.4 tonnes in the April-June quarter of 2026, with higher import duties and seasonal softness in sales both weighing on purchases. That suggests the government’s attempt to cool imports is already affecting buying patterns in one of the world’s largest gold markets.
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