The Government of India has increased import duties on gold and certain precious metal products, with the revised rates coming into effect immediately. The move comes at a time when global precious metal markets are experiencing heightened volatility amid geopolitical tensions in West Asia.
According to a statement issued by the Ministry of Finance, gold and silver findings—components used in jewellery manufacturing such as clasps, hooks and other fittings—will now attract an import duty of 5%. Similarly, platinum findings will face a 5.4% import duty.
The government has also revised the duty structure for precious metal spent catalysts, setting the import duty at 4.35%, subject to compliance with prescribed conditions and regulatory requirements.
The decision is expected to impact jewellery manufacturers, importers and traders who rely on imported precious metal components. Higher import duties generally increase procurement costs, which may eventually be reflected in product prices if businesses pass on the additional burden to consumers.
The duty revision comes against the backdrop of rising uncertainty in international markets. Gold prices have witnessed increased fluctuations as investors seek safe-haven assets amid geopolitical developments in West Asia. Concerned about the economic implications of heightened gold demand and imports, Prime Minister Narendra Modi had earlier urged citizens to exercise restraint in purchasing gold during the ongoing regional crisis.
India remains one of the world's largest consumers of gold, and changes in import duties are closely watched by market participants due to their potential impact on domestic prices, jewellery demand and the country's trade balance.
Market observers will now monitor how the revised duty rates influence import volumes, retail prices and demand trends in the coming months, particularly during the festive and wedding seasons when gold purchases traditionally surge.
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