India will not increase duties on gold and silver imports despite concerns about rising import bills and diminishing foreign exchange reserves, according to a government official on Monday. This announcement follows Prime Minister Narendra Modi’s appeal for citizens to refrain from buying gold for a year to aid the nation in preserving foreign currency amid challenges linked to the ongoing US-Israel war involving Iran.
The Prime Minister’s statement sparked speculation that the government might introduce higher import duties on gold and silver now that the elections in significant states, including West Bengal and Tamil Nadu, have concluded. However, government sources have confirmed that there are currently no plans to adjust the import duties on either of these precious metals.
At present, the import of gold in any form incurs a duty of 6 percent, which comprises a 5 percent basic customs duty (BCD) and a 1 percent agriculture infrastructure and development cess (AIDC). Similarly, the total import duty for silver is also set at 6 percent for eligible Indian residents.
Experts emphasize that the Prime Minister’s request to curtail gold purchases aligns with national interests, as the rising imports adversely affect India’s foreign exchange reserves and trade balance, according to Ajay Srivastava from the Gold Trade Research Institute (GTRI). Furthermore, GTRI analysis suggests that the government needs to reassess its Free Trade Agreement (FTA) policies, particularly regarding tariff concessions on precious metals granted to Dubai under the India-UAE trade deal. This FTA has played a significant role in the recent spike in gold imports.
Gold bar imports into India have surged dramatically, jumping from $36.5 billion in 2022 to an anticipated $58.9 billion in 2025, according to GTRI’s analysis.
Published on May 11, 2026.
