Buying gold and silver has become more expensive from today. The central government has increased the import duty on both precious metals, which is expected to push jewellery prices higher across the country.
According to a new notification issued by the Finance Ministry, the basic customs duty on gold and silver has now been increased to 10%. Along with this, a 5% Agriculture Infrastructure and Development Cess (AIDC) will also apply.
Because of these changes, the total effective import duty has jumped from 6% to 15%.
This increase will not affect only raw gold and silver. The government has also revised duty rates on jewellery-making materials such as platinum and small jewellery parts known as findings. As a result, manufacturing costs for jewellers are expected to rise further.
Why Did the Government Increase the Duty?
The main reason behind this decision is India’s rapidly rising gold imports.
During the financial year 2025-26, India imported gold worth nearly $71.98 billion. This was around 24% higher compared to the previous year. Even though the quantity of imported gold fell slightly, global gold prices remained very high, increasing the country’s import bill significantly.
This has also added pressure on India’s foreign exchange reserves. At the same time, the country’s trade deficit has reportedly reached $333.2 billion.
To control rising imports and reduce pressure on the economy, the government decided to make gold imports more expensive.
PM Modi Urges People to Avoid Unnecessary Spending
The government’s move also comes at a time when global tensions are increasing, especially due to the Iran crisis and instability in the Middle East.
Prime Minister Narendra Modi has appealed to citizens to follow economic discipline during this uncertain period. He advised people to avoid unnecessary expenses, delay gold purchases if possible, and cut down spending on foreign travel.
The government believes that careful spending and controlled imports can help protect the Indian economy from global financial risks.
Gold Prices Already Near Record Levels
Gold prices in India were already rising rapidly even before the latest duty hike.
After crossing the ₹1 lakh mark for the first time in April last year, the price of 10 grams of gold in Delhi is now moving closer to ₹1.5 lakh.
Experts believe prices may increase further in the coming days because imported gold from countries such as the UAE and Switzerland will now attract higher duties.
With prices continuously rising, gold, once seen as a safe and affordable investment for common families, is slowly becoming a luxury item for many buyers.
