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Gold and Silver Imports Costlier – India Hikes Tariff to 15 percent from 13 May 2026

May 13, 2026

OVERVIEW

On 13 May 2026, the Indian government increased the effective import tariff on gold and silver to 15%. Earlier, it was only 6%. The new duty has two parts: a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess. This move comes after India’s gold imports reached a record $71.98 billion in 2025-26. Gold is now the second biggest import item after crude oil. The higher duty may affect prices and try to control the import bill.

GOVERNMENT RAISES IMPORT TARIFF ON GOLD AND SILVER

On  13 May 2026 , the Government of India issued new orders. These orders raised the effective import tariff on gold and silver to  15% . Before this change, the tariff was only 6%. This is a sharp increase. The new rate applies to both precious metals.

UNDERSTANDING THE NEW DUTY STRUCTURE

The 15% tariff is not a single tax. It is a combination of two different levies:

Levy Rate
Basic Customs Duty 10%
Agriculture Infrastructure and Development Cess 5%
Total Effective Tariff 15%

Both are collected under Indian customs law. The Agriculture Infrastructure and Development Cess is an additional levy used to raise funds for farming-related projects.

GOLD IMPORTS AND TRADE DATA – WHY THE HIKE?

India loves gold. It is the world’s second-largest gold consumer. In the financial year  2025-26 , India’s gold imports rose by more than  24%  . The total value reached a record  $71.98 billion .

Here is how gold now ranks in India’s import list:

  • Largest import item:  Crude oil

  • Second largest import item:  Gold (accounting for nearly 9% of India’s total import bill)

When gold imports go up, India spends more foreign exchange. This puts pressure on the rupee and the trade deficit. By raising the import duty, the government hopes to reduce gold demand and control the outflow of dollars.

IMPORT POLICY AND RELATED TERMS

The new 15% duty also applies to:

  • Gold imported from the  United Arab Emirates (UAE)  under the fixed-quantity quota system

  • Jewellery findings  (small parts used in making jewellery)

  • Precious metal-related industrial imports

These are specific categories used in customs classification and trade regulation. India has a trade agreement with the UAE that allows a certain quantity of gold to come

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