The government has collected ₹10,463 crore in customs duty on gold, silver and platinum imports between May 13 and August 2, 2026, as reported by The Hindu BusinessLine. According to Minister of State for Finance Pankaj Chaudhary's written reply to the Lok Sabha, the duty was hiked with effect from May 13, 2026. The government had more than doubled the effective import duty on gold and silver by raising the basic customs duty to 10 per cent and the agriculture infrastructure and development cess to 5 per cent. The cumulative collection from all three precious metals demonstrates the significant impact of the duty hike on government revenue, with ₹328 crore collected on silver and ₹95 crore on platinum during the extended period.
The import duty on gold and silver was hiked to 15 per cent from 6 per cent, and that on platinum to 15.4 per cent from 6.4 per cent, with effect from May 13, as reported by The Hindu BusinessLine. The move was aimed at curbing high import volumes that were putting pressure on the current account and foreign exchange reserves. Consequential changes were also made to other items, including gold and silver dore, coins, and findings. These increases were implemented to check discretionary imports and prioritise forex for essential imports like crude oil, fertilisers, industrial raw materials and capital goods.
Between May 13 and August 2, 161 kg of smuggled gold were seized and 116 persons arrested, according to the minister's statement reported by The Hindu BusinessLine. These enforcement actions demonstrate the government's commitment to controlling illegal gold imports and ensuring proper duty collection, with the latest data confirming the continued effectiveness of these measures. No official estimate is available on the quantum of gold lying idle with households in the country, as such data is not maintained by the government.
The duty hike was implemented on May 13 to address the war in West Asia and the effective blockade of the Strait of Hormuz, which had raised prices of crude oil and food, fertiliser imports, as reported by The Hindu BusinessLine. Gold imports in India, the world's second biggest gold consumer after China, are driven by the jewellery industry demand and involve substantial foreign exchange outflow. The government's focus on prioritising essential imports over discretionary purchases reflects broader economic considerations during periods of geopolitical uncertainty.
