Metal Stocks Jump As India Raises Import Duty On Gold, Silver And Other Metals

Metal stocks rose sharply on Wednesday, 13 May, after the government raised import duties on gold, silver and other precious metals, boosting sentiment across the sector. Hindustan Zinc, Vedanta, Hindustan Copper, NALCO and Hindalco gained during the session, while the Nifty Metal index also ended higher on broad-based buying. 

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Metal Stocks See Broad-Based Buying

Hindustan Zinc led the gains, followed by strong advances in Hindustan Copper. Vedanta, NALCO and Hindalco Industries also moved higher, reflecting improved sentiment across base metal producers.
The Nifty Metal index rose 1.3%, with all constituents ending the session in positive territory.

Government Raises Import Duty To 15%

As per reports, the government has increased import duties on gold, silver and related precious metals to a total of 15% from 6% earlier. The revised structure includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC).

The new duty regime, effective from 13 May 2026, also applies to platinum, jewellery inputs and other imports linked to precious metals. Import benefits under the UAE quota mechanism have also been reduced, increasing the landed cost of imported bullion.

Bullion Prices Surge On Duty Change

Following the duty hike, gold price and silver price jumped sharply and hit 6% upper circuit levels on the Multi Commodity Exchange (MCX). Gold rose by ₹9,206, or 6%, to ₹1,62,648 per 10 gram. Silver gained ₹16,743, or 6%, to ₹2,95,805 per kilogram.

Reason Behind The Policy Move

The duty revision aims to reduce imports of precious metals and ease pressure on India’s foreign exchange reserves. As per reports, the government has taken the step amid rising global uncertainty and increasing bullion demand.

The policy change covers gold, silver, platinum and jewellery-related imports. It is expected to make imported bullion more expensive in the domestic market and influence trade flows.

Rising Import Trends In India

India’s gold imports have risen steadily in recent years. Imports increased more than 24% to $71.98 billion in 2025–26, compared with $58 billion in the previous year. Earlier, imports stood at $45.54 billion in 2023–24 and $35 billion in 2022–23.

Gold remains a major import item due to strong demand from jewellery and investment segments. It accounts for over 9% of India’s total imports, as per reports.