Gold Imports Start Falling After Import Duty Increase; Government Says No More Steps Planned

Gold imports into India have declined since the government raised import duties in May 2026, news reports citing a government official said.  

The official added that the impact of the higher levy is now visible in import trends and that there are no plans to introduce any additional measures to curb inbound shipments of the precious metal. 

Import Tax Raised Above 15% 

The government revised the duty structure on gold and silver imports last month. Basic customs duty was increased from 5% to 10%, while a 5% Agriculture Infrastructure and Development Cess continues to apply.  

With the revised structure, the overall import tax has risen from about 6% earlier to more than 15%. 

Higher Levy on UAE Shipments 

The changes also cover gold imported from the United Arab Emirates under the tariff quota mechanism. These imports previously attracted lower duty rates under the arrangement.  

Following the revision, the applicable levy has increased, making imports through this route more expensive than before. 

Costlier Imports May Slow Buying 

The higher duty has increased the landed cost of imported gold. The rise in prices is expected to reduce overseas purchases and lower import volumes over the coming months.  

Domestic gold prices have also moved higher after the duty revision, while jewellery manufacturers are adjusting to increased input costs. 

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Conclusion 

Government officials said the decline in imports following the duty increase suggests that the revised tax structure is already influencing trade flows.  

With no further curbs under consideration, import volumes are expected to remain lower in the near term, while buying is likely to be driven mainly by weddings and other essential requirements. 

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