India raises gold import duties to 15% amid rupee slump
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- India raised import duties on gold and silver to a combined 15% (10% basic customs duty plus 5% tax) effective Wednesday.
- World Gold Council data show India’s average monthly gold imports jumped to 83 tonnes in Jan‑Feb 2026 from 53 tonnes a year earlier, pushing first‑quarter gold demand to a record $25 billion.
- Vishrut Rana of S&P Global Ratings said lower gold imports can help trim India’s current‑account outflows, but high energy costs will keep rupee pressure persistent.
- Trinh Nguyen of Natixis warned that raising duties marks a backtrack on market liberalisation, shifting policy away from fuel‑price cuts and potentially dampening investor sentiment.
- Prime Minister Narendra Modi urged citizens to curb bullion purchases for a year and to conserve fuel, linking the duty hike to rupee weakness and Middle‑East tensions that have closed the Strait of Hormuz.
Why it matters: Gold importers face higher costs, while the government hopes to curb the $25 billion quarterly gold spend and ease rupee pressure, though energy price spikes still dominate the trade deficit.
Ask SkimNews
