Import Duty on Gold: Gold and silver prices witnessed a massive surge today, May 13. On Sunday, Prime Minister Narendra Modi appealed to citizens to refrain from purchasing gold for a year; following this appeal, the government has now taken a significant step on gold. A substantial hike has been observed in the import duty levied on gold. The Modi government has raised the Gold Customs Duty from 6 per cent to 15 per cent. This implies that gold imported from abroad is now set to become significantly more expensive. The revised gold rates came into effect on Wednesday, May 13.
A Major Announcement by the Modi Government
Over the past few years, gold prices have witnessed a considerable surge. In fact, daily fluctuations—both ups and downs—have been common in gold prices. However, instances of price surges have been far more frequent than price declines. There was a time when the price of 24-carat gold stood at ₹70,000 per 10 grams; however, gold rates have now crossed the ₹ 1,60,000-per-tola mark. PM Narendra Modi urged citizens to abstain from purchasing gold for one year, regardless of whether there was a wedding or any other event in their households. The rationale he emphasised behind this appeal was the need to conserve foreign exchange reserves.
Ministry of Finance updates customs duty rates for precious metals & findings vide Notification 16/2026-Customs, effective today (May 13).
Gold & Silver findings to attract 5% duty, Platinum findings at 5.4%. Precious metal spent catalyst set at 4.35%, subject to the fulfilment… pic.twitter.com/atSGTXjDTQ
— ANI (@ANI) May 13, 2026
Total Duty on Gold Now Stands at 15%
In a sudden move, the Modi government announced an increase in the Basic Customs Duty applicable to gold, raising it directly from 5 per cent to 10 per cent. Additionally, the Agriculture Infrastructure and Development Cess (AIDC) has been raised from 1 per cent to 5 per cent. Consequently, the total Gold Import Duty has risen to 15 per cent.
It is worth recalling that during the 2024 Budget speech, Finance Minister Nirmala Sitharaman had announced a reduction in the Gold Import Duty. At that time, the duty was lowered from 15 per cent to 6 per cent. Specifically, the Basic Import Duty was reduced from 10 per cent to 5 per cent, and the AIDC was reduced from 5 per cent to 1 per cent. This move had provided significant relief to gold buyers and had made gold considerably more affordable at the time. However, in a move that has dealt a major blow to the general public, the government has now hiked the duty on gold to 15 per cent.
In light of this, the question arises: will people continue to purchase gold, or will they heed PM Modi’s advice and refrain from buying it for a year? Furthermore, another pertinent question is just how much more expensive gold is set to become in India as a result of this increased import duty. PM Modi has also urged citizens to exercise prudence in their consumption of petrol and diesel to alleviate pressure on the country’s foreign exchange reserves.
What will be the impact on the common man?
The most significant impact of this decision is expected to be felt by those looking to purchase jewellery. The operational costs for bullion traders will rise, and this financial burden will ultimately be passed on to the customers. Consequently, purchasing gold—whether for weddings or for investment purposes—is now set to become significantly more expensive than before.
The hike in import duty will not only impact the jewellery sector but also affect industries that utilise precious metals in their manufacturing processes, as well as the electronics sector. As their production costs rise, the prices of various consumer products could also increase.