The Indian government has announced a comprehensive increase in import duties on gold, silver, platinum, and other precious metals to 15% effective from May 13, 2026. According to the latest government notification, this hike includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC), aimed at curbing excessive imports and easing pressure on foreign exchange reserves. The updated structure places gold and silver imports under a new higher tax regime, with the duty increase extending beyond precious metals to include jewellery components and spent catalysts for recovery. Import duties on gold and silver jewellery findings now stand at 5%, while those on platinum findings have been set at 5.4%, with spent catalysts benefiting from a concessional duty of 4.35% subject to certain compliance conditions.
Metal stocks witnessed a sharp surge on Wednesday, May 13, tracking a steep rise in gold, silver and other base metals. According to reports from LiveMint, the rally came after the government raised import duties on several categories of gold, silver and other precious metal imports to 15% from 6%. Nifty Metal soared 1.3% with all its constituents in the green, as the jump in commodity prices dented sentiment across the sector. However, broader market sentiment remained fragile as the Nifty 50 opened at 23,416.50, up 36.95 points or 0.16%, reflecting a muted recovery attempt after four days of heavy selling.
Hindustan Zinc emerged as the top gainer, surging almost 5% followed by Hindustan Copper, which added over 3%. As reported by LiveMint, Vedanta, National Aluminium Company, and Hindalco gained over 1.5% each. In early Wednesday trading, Asian Paints led the Nifty 50 gainers with a 3.68% rise to ₹2,597.60, while Tata Steel rose 1.39% to ₹214.95 and Hindalco added 1.21% to ₹1,054.00. The strong performance across metal counters reflected the positive sentiment generated by the government's policy announcement.
Jewellery stocks came under sharp selling pressure on Wednesday, May 13, after the government raised customs duties on gold and silver to 15% from 6%. Major companies like Kalyan Jewellers, Titan Company, PC Jeweller, P N Gadgil Jewellers, Senco Gold, and Thangamayil Jewellery declined up to 6%, reflecting concerns over higher input costs and potential demand slowdown. The decline in jewellery stocks contrasted sharply with the gains in metal producers, highlighting the different impact of the duty hike on different segments of the precious metals value chain.
Buying in precious metals intensified significantly, with gold and silver prices hitting 6% upper circuit each. According to LiveMint, MCX gold rate was up by ₹9,206, or 6%, at ₹1,62,648 per 10 gram, while MCX silver price spiked by ₹16,743, or 6%, to ₹2,95,805 per kg. The strong buying interest in precious metals reflected investor confidence in the policy impact, though broader market weakness limited the sector's ability to sustain higher levels.
The government's decision aligns with India's strategic economic measures to stabilise foreign exchange reserves and address fiscal challenges. According to Angel One, with gold making up over 9% of total imports, the increased duty aims to alleviate pressure from the current account deficit, which was 1.3% of GDP in the December quarter according to Reserve Bank of India data. The move is anticipated to curtail soaring import values and address fiscal challenges associated with the trade and current account deficits, which widened to $333.2 billion in 2025-26. In the fiscal year 2025-26, India recorded gold imports worth $71.98 billion, an increase of 24% from the previous year, despite volume-wise imports falling by 4.76% to 721.03 tonnes.
