Jewellery stocks will come under pressure on Wednesday after the Government imposed a 15% customs duty on gold and silver, up from the previous 6% rate. According to reports from The Times of India, in a late-night order issued on Tuesday, the Finance Ministry revised customs duty rates on gold, silver and other precious metals, signalling that the government may begin implementing its belt-tightening measures from within. The duty hike represents a substantial increase in costs for jewellery manufacturers and retailers who rely on gold and silver imports for their business operations. The revised notification also covers jewellery findings - small components such as hooks, clasps, clamps, pins and screw backs used in manufacturing - which will now attract 5% customs duty in the case of gold and silver, while platinum findings will face a 5.4% levy. Under the revised duty structure, effective May 13, 2026, the government has imposed a 10% basic customs duty and 5% Agriculture Infrastructure and Development Cess (AIDC) on imports of gold and silver, taking the effective import tax on both metals to 15%. As per The Hindu BusinessLine, industry officials warned that higher import taxes could revive smuggling, which had eased after India cut tariffs in mid-2024. A Mumbai-based bullion dealer noted that "grey markets are likely to become active, as the incentives to bring in gold illegally are high. At current price levels, smugglers could make significant profits."
Texmaco Rail and Engineering Ltd has secured a major international rail opportunity in South Africa valued at more than ₹4,045 crore through a letter of award from a South African train operating company. As reported by The Hindu BusinessLine, the order covers the supply of more than 2,235 freight wagons across multiple variants, along with 30 diesel locomotives. Additionally, Puravankara's subsidiary Starworth Infrastructure and Construction Ltd has secured a ₹57.81 crore order for the Westin Hotel project in Whitefield, Bengaluru.
Alfa Transformers has received a contract worth ₹8.15 crore from TP Western Odisha Distribution (TPWODL), a joint venture of Tata Power and the Government of Odisha, for the supply of distribution transformers in various capacities. According to The Hindu BusinessLine, the contract is expected to be completed by May 5, 2028. Interarch Building Solutions Ltd has won a domestic order valued at approximately ₹102 crore plus taxes for Design, Engineering, Manufacturing, Supply & Erection of a Pre-Engineered Steel Building System with an execution timeline of approximately 8–10 months.
The Centre's decision to raise gold import duties comes after Prime Minister Narendra Modi urged citizens to pause non-essential gold purchases for the next one year as part of a broader austerity appeal amid the ongoing West Asia crisis. According to The Times of India, Modi made this appeal during his public address in Hyderabad on Sunday, where he urged citizens to reduce fuel consumption, cut back on edible oil usage, and postpone non-essential gold purchases for one year amid global uncertainty triggered by the West Asia crisis. As part of the same austerity drive, Modi has also asked officials to increase the use of electric vehicles in his fleet, but without purchasing new vehicles in order to avoid additional expenditure. The move is being seen as an attempt to balance sustainability with fiscal restraint, with the government reportedly considering curbs on non-essential travel by ministers and officials, increased use of virtual meetings, wider adoption of work-from-home arrangements, and greater use of public transport.
The higher duties could dampen demand in the world's second-largest consumer of precious metals, although they may help narrow India's trade deficit and support the rupee, one of Asia's worst-performing currencies. As per The Hindu BusinessLine, Surendra Mehta, national secretary at the India Bullion and Jewellers Association, noted that "As expected, the government has raised duties to curb the current account deficit. However, this could affect demand, as gold and silver prices were already elevated." India meets almost all of its gold consumption through imports, with gold demand, particularly for investment purposes, having risen in India amid a recent rally in prices and negative returns from equities over the past year. Inflows into India's gold exchange-traded funds (ETFs) surged 186% year-on-year in the March quarter to a record 20 metric tons, according to the World Gold Council. The government has been trying to curb gold imports in recent weeks and began levying a 3% integrated goods and services tax (IGST) on gold and silver imports, prompting banks to halt imports for more than a month. As a result, April imports fell to a near 30-year low, with banks resuming imports after paying the 3% IGST but imports now likely to fall again following the increase in import duties.
