Government Hikes Import Duty On Gold, Silver And Platinum To Protect Economy Amid Global Uncertainty

The Government of India has announced a significant increase in customs duty on precious metals, including gold, silver and platinum, as part of a broader strategy to protect the country’s economy from external shocks and rising global uncertainty.

Under the revised structure, import duty on gold and silver has been increased from 6 percent to 15 percent, while the duty on platinum has been raised from 6.4 percent to 15.4 percent. Similar changes have also been introduced for related products such as gold and silver dore, coins and findings.

According to the government, the decision comes at a time when the ongoing West Asia crisis has triggered volatility in global crude oil markets and international shipping routes. As India remains heavily dependent on crude oil imports, any rise in energy prices or disruption in supply chains could sharply increase the country’s import bill and place pressure on inflation as well as the Current Account Deficit (CAD).

Officials stated that in such conditions, India’s foreign exchange reserves must be prioritised for essential imports including crude oil, fertilisers, industrial raw materials, defence equipment, capital goods and critical technologies that directly support economic growth, infrastructure and national security.

The government noted that precious metals, although culturally and financially important, are largely consumption and investment-driven imports that result in substantial foreign exchange outflows without contributing significantly to productive industrial activity.

The increase in customs duty is therefore intended to moderate avoidable imports and reduce pressure on the external account. The Centre clarified that the measure is not prohibitory or anti-consumer, but rather a calibrated economic intervention aimed at strengthening macroeconomic stability during a period of elevated external risks.

The move is also being linked to Prime Minister Narendra Modi’s recent appeal for economic discipline and responsible consumption amid the evolving global situation. Citizens have been encouraged to reduce unnecessary foreign expenditure, conserve fuel and support domestic resilience.

The government further emphasised that customs duty revisions on precious metals have historically been adjusted based on prevailing economic conditions. In the Union Budget 2024-25, duties on gold and silver had earlier been reduced from 15 percent to 6 percent due to stronger macroeconomic conditions and comfortable foreign exchange reserves at the time.

Officials said the latest increase reflects a preventive and forward-looking policy approach aimed at managing emerging risks before they intensify further. The government believes the decision demonstrates prudent economic governance while avoiding stricter import restrictions or disruptive corrective measures in the future.

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