Gold Import Duty

Value of gold imports rose in FY26 even as volumes fell. Apurva Sheth of Samco explains why higher gold duty may not curb demand and why fuel price hikes could better protect India's fiscal position

Persistent importer demand, elevated crude oil prices and West Asia tensions pushed the rupee to a record closing low despite RBI intervention

The significant increase in the import duty on gold from 6 per cent to 15 per cent may lead to an increase in imports from Dubai through the free trade agreement route, think tank GTRI said on Wednesday. It said that the duty hike also sharply changes the economics of precious metal imports routed through the United Arab Emirates under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). India had allowed imports of gold from Dubai at tariffs one percentage point below the normal Most-Favoured-Nation (MFN) rate through a Tariff Rate Quota (TRQ) system. The quota began at 120 tonnes annually in 2022 and is set to rise to 200 tonnes by 2027, nearly one-fourth of India's yearly gold imports. "With the new MFN tariff structure taking effective duties to 15 per cent, gold imported under the UAE quota would enter at 14 per cent. The widening tariff gap could encourage greater routing of global bullion through Dubai, even though the UAE is not a miner of gold or silver," the

India is ​the ‌world's second-largest consumer of gold ‌and the largest ‌consumer of silver

The effective duty on gold is currently 18.45%, which includes 12.5% import duty, 2.5% agriculture infrastructure development cess and other taxes

India is the world's biggest importer of edible oils and silver and the second-biggest consumer of gold

Indian gold imports in May were recorded at 107 tonnes, a rise of 790 per cent year-on-year, and impacting the current account deficit negatively

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Gross export of gems and jewellery declined by 5.3% to $27.7 bn for the first nine months of this FY

The illegal trade could rise further in coming months as India, the world's second biggest gold consumer, raised an import tax on gold by 2.5 percentage points to 12.5% in July's federal budget

Slash GST rate, bring down import duty on gold from 10%

India's trade deficit narrowed more-than-expected to $12.96 billion in June