India Eyes Gold Import Duty Cut Amid Smuggling Concerns

The Indian government is considering reducing import duties on gold and silver as concerns rise over smuggling. According to sources, officials are assessing whether lower duties could make legal imports more attractive and reduce incentives for smuggling.

Bullion traders and jewellers have urged the government to bring the gold import duty down to 6% from the current 15%. The duty was increased on May 13, 2026, as part of efforts to curb gold imports and conserve foreign exchange reserves. However, industry representatives argue that higher taxes have widened the price difference between legally imported gold and smuggled supplies.

India imports around 700-800 tonnes of gold annually, making it one of the world's largest gold markets. The government is also looking at import duties on other precious metals, including silver and platinum. While higher duties can protect foreign exchange reserves by discouraging imports, they may also increase costs for industries that depend on these metals.