The Centre’s decision to sharply increase import duty on gold and silver is expected to directly affect jewellery buyers, bullion traders and even household buying patterns ahead of the festive and wedding season. The move comes days after Prime Minister Narendra Modi appealed to citizens to avoid buying gold for a year as India looks to reduce pressure on foreign exchange reserves amid global uncertainty.
From May 13, the effective import duty on gold has been increased from 6 per cent to 15 per cent through Customs Notification No. 16/2026 issued by the Ministry of Finance. While the government sees the step as an economic safeguard, buyers may soon feel the impact in jewellery showrooms across the country.
