BRIC Team reports: Listen to this article in summarized format Listen Loading...×× Subscribe to Unlock AI Briefing and Premium ContentNew Year Offer 24 Hours LeftSubscribe NowAlready a member? Sign InWhat's IncludedExclusive StoriesDaily ePaper AccessSmart Market ToolsCurated Investment IdeasAd-lite Experience SubscriptionAgenciesGold prices to rise after import duty hike?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.
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. .bgBig{border-bottom:0;padding:20px 0 0 0;} .bgBig a.bglink{font-family:Faustina;font-size:20px;font-style:normal;font-weight:600;line-height:normal;border-bottom:0;} Also Read: Gold price today: Check 18 carat, 22 carat and 24 carat gold rates in Delhi, Mumbai, Chennai, Kolkata and other cities What Gold import duty hike means for your next jewellery purchase The biggest immediate effect of the duty hike is likely to be higher gold prices at the retail level.
Background
Gold imported into India will now attract 10 per cent Basic Customs Duty (BCD) and 5 per cent Agriculture Infrastructure and Development Cess (AIDC), compared to the earlier 5 per cent and 1 per cent respectively. ScenarioDuty RateDuty Amount on Rs 1,54,750Landed Value After DutyEarlier structure6%Rs 9,285Rs 1,64,035New structure15%Rs 23,212Rs 1,77,962 The final retail price can climb even further after adding GST, jeweller margins and making charges. For buyers, this could mean:Paying significantly more for new jewellery Delaying wedding or festive purchases Opting for lighter jewellery designs Exchanging old ornaments instead of buying fresh gold Turning towards digital gold or gold ETFs The decision suggests the government is trying to discourage both investment-driven buying and ceremonial purchases through a mix of public messaging and higher pricing.
Key facts
- Listen to this article in summarized format Listen Loading...×× Subscribe to Unlock AI Briefing and Premium ContentNew Year Offer 24 Hours LeftSubscribe NowAlready a member?
- 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.
- Why the government raised import duty on gold India imports almost all the gold consumed in the country, and these imports are paid for in US dollars.
What this means
Why the government raised import duty on gold India imports almost all the gold consumed in the country, and these imports are paid for in US dollars. In 2025-26, India reportedly spent a record $71.98 billion on gold imports, with the metal accounting for nearly 9-10 per cent of the country’s total import bill. At the same time, global tensions linked to the Iran war and rising crude oil prices have increased pressure on India’s forex reserves.
The concern is that a prolonged period of global instability could widen the current account deficit further.Also Read: India raises gold import duty back to 15%: What’s behind the move The government’s calculation appears simple: lower gold imports could help save dollars. Estimates mentioned in the report suggest that a 30-40 per cent drop in gold imports could potentially save India $20-25 billion annually. The move signals a broader push towards recycling and domestic recovery instead of relying entirely on imported gold.
