India raises gold, silver import duties to 15% and platinum to 15.4%

New Delhi: The government on Saturday imposed restrictions on imports of certain kinds of silver, days after it increased customs duty on the precious metal to 15% from 6%, as part of measures to preserve precious foreign exchange and contain the country's rising import bill amid the ongoing conflict in West Asia.The Directorate General of Foreign Trade (DGFT) amended the import policy for certain forms of silver including bars containing 99.9% or more by weight of the precious metal to "restricted" from "free" earlier, implying that their imports will now require a licence.The government had increased customs duty on gold and silver imports to 10% from 5%, and agriculture infrastructure and development cess to 5% from 1%, taking the total effective import duty to 15% with effect from May 13.Also Read: Inflation storm builds in India as ₹ sinks deeper"The import policy of items covered... are revised from 'free' to 'restricted'," the DGFT said in a notification. India imported $4.24 billion of semi-manufactured silver in FY25.131144364Price Up 12% Since AprilOf this, almost half came from the UK. Hong Kong and Australia were the next two sources of import. Silver prices have risen almost 12% since April 1. India's silver imports surged 157.16% year-on-year to $411 million in April. Overall merchandise imports went up 10% on-year to $71.94 billion during the month.Also Read: Will petrol and diesel prices rise again?"This was required as import duty has been raised to 15% and since these two codes were free to import, there was a chance of getting these under various free trade agreements at lesser duty," said an industry representative, who did not wish to be identified.

The government has imposed fresh curbs on silver imports, shifting several categories of the metal from the “free” to the “restricted” import policy regime, according to an official notification.Under the revised rules, imports of silver bars, unwrought silver and semi-manufactured silver forms, including silver in powder form, will now require mandatory government approval. Certain categories of silver imports have also been made subject to Reserve Bank of India regulations. The changes have been introduced through amendments in the import policy schedule under the ITC (HS) classification.The move comes amid a broader government effort to tighten oversight of precious metals imports and contain the country’s rising import bill.Also Read: Government tightens rules for duty-free gold imports, caps quantity at 100 kg per licenceEarlier, the Centre raised import duty on gold and silver to 15 per cent from 6 per cent. Simultaneously, the Directorate General of Foreign Trade (DGFT) tightened norms for duty-free gold imports by gems and jewellery exporters under the Advance Authorisation (AA) scheme.Under the revised framework, gold imports under AA will be capped at 100 kg per licence, while first-time applicants will face mandatory physical inspection of manufacturing facilities before approvals are granted.The DGFT has also introduced stricter compliance conditions for repeat applicants. Fresh authorisations will now be issued only after at least 50 per cent of export obligations under previous licences are fulfilled.In addition, exporters importing gold duty-free will have to submit fortnightly reports, certified by chartered accountants, detailing import and export transactions. Regional authorities will also provide monthly consolidated reports to DGFT headquarters for central monitoring.Also Read: Explainer: Why India's higher tariffs are unlikely to dent gold, silver demandThe tighter regulations come after India’s gold imports surged more than 24 per cent to a record $71.98 billion in 2025-26, despite lower import volumes. Switzerland remained the largest source of gold imports, followed by the UAE and South Africa.Industry bodies, including the All India Gems and Jewellery Council, have cautioned that higher duties and tighter restrictions could encourage grey market activity and smuggling.

Higher import duty on precious metals has widened domestic discounts, weakened demand and added pressure on gold and silver imports

In an effort to curb demand, India's finance ministry has doubled the customs duty on gold and silver to 15%, significantly increasing domestic prices. This move follows Prime Minister Modi's appeal to reduce gold purchases, as India is the world's second-largest buyer of the precious metal.

The Centre has increased customs duty on gold, silver and platinum imports to conserve foreign exchange and protect macroeconomic stability amid rising global uncertainty

The government wants to curb non-essential imports to protect the rupee