India hikes gold, silver import tariffs to 15% from 6% to curb imports, defend rupee

Government of India lifts duties on gold and silver to 15% (10% BCD + 5% AIDC) from 6%, with 3% IGST on top. Jewellers including Tanishq, Kalyan and Titan brace for demand shock; industry warns of smuggling revival. PM Modi urged citizens to skip gold purchases for a year.

— FiledWed, 13 May, 2026, 06:35 IST·First seen Wed, 13 May, 2026, 07:40 IST·Source The Hindu BusinessLine

What happened

Government of India · India hiked gold and silver import tariffs to 15% from 6% to curb imports and support the rupee. Jewellers warn of demand hit and revival

Key facts

  • 15% tariff
  • 10% basic customs duty
  • 5% AIDC
  • previous 6% duty
  • 3% IGST
  • 186% YoY ETF inflow surge
  • 20 metric tons Q1 ETF inflows

Why this matters

Smuggling revival and a year-long demand freeze will distress smaller regional chains—line up balance-sheet-led acquisitions of family-owned jewellers who can't hold working capital through the duty regime.