India Moves To Lift Gold Import Duty To 15% To Support External Stability

India has increased import duties on gold, silver, and platinum to strengthen foreign exchange reserves and manage external economic pressure amid global uncertainty linked to geopolitical tensions in West Asia.

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The government has raised the import duty on gold and silver from 6% to 15%. For platinum, the duty has been increased from 6.4% to 15.4%. The revised rates also apply to gold and silver dore, coins, and related products, according to official information cited by ET Bureau sources.

Move Aimed At Protecting Foreign Exchange Reserves

The decision has been taken to reduce pressure on India’s foreign exchange reserves at a time when global conditions remain uncertain. Officials said that foreign exchange resources need to be preserved for essential imports such as crude oil, fertilisers, defence equipment, industrial raw materials, and capital goods.

These imports are considered important for supporting manufacturing, infrastructure, and overall economic activity in the country.

Higher Focus On Essential Imports

The government has stated that essential imports will remain the priority as India depends heavily on overseas supplies for energy and key industrial inputs. Crude oil imports, in particular, remain a major factor in the country’s import bill.

Officials stated that gold imports, mainly driven by consumption and investment demand, cause major foreign exchange outflow without adding directly to productive sectors of the economy. 

Global Uncertainty And Oil Market Pressure

The decision also comes amid volatility in global crude oil prices and shipping routes due to ongoing tensions in West Asia. India imports most of its crude oil requirements, making the economy sensitive to global price fluctuations.

A rise in oil prices or supply disruptions can increase the import bill, widen the Current Account Deficit (CAD), and add pressure on inflation. In this context, limiting non-essential imports is seen as a measure to support external stability.

Industry View

Suvankar Sen, Managing Director and CEO of Senco Gold, said gold prices are likely to remain stable for around a year. He added that demand volumes may fall by 10–15%, although the overall value of sales could stay steady as consumers may prefer lighter jewellery.

The increase in import duty on precious metals is aimed at reducing foreign exchange outflows and supporting macroeconomic stability. Authorities have described the decision as a preventive measure to handle external risks while keeping essential imports flowing without interruption in place.