13 May 2026 – On Wednesday, the Finance Ministry raised import duty on gold and silver to 15 per cent from 6 per cent, effective immediately. Markets responded instantly, with domestic gold futures surging 7.2 per cent to ₹1,64,497 per 10 grams. On the ground in Chennai, 22-karat gold jumped to ₹15,400 per gram from ₹14,100 per gram on Monday — a rise of nearly ₹1,300 per gram in just two days.
The decision combines a 10% basic customs duty with a 5% Agriculture Infrastructure and Development Cess, and follows Prime Minister Narendra Modi’s rare public appeal on Sunday urging Indians to avoid buying gold for a year — a move that underscored how seriously the government is treating the pressure on India’s foreign exchange reserves.
India’s forex reserves have fallen from an all-time high of $728.49 billion in late February to $690 billion by May 1 — a slump of nearly $38.5 billion in roughly 10 weeks — driven largely by soaring crude oil prices that have crossed $107 per barrel due to the ongoing US-Iran war and the blockade of the Strait of Hormuz. Industry bodies have warned the duty hike risks fuelling gold smuggling, with the All India Gems and Jewellery Council cautioning that a grey market could emerge, setting back the very goal the government is trying to achieve.
