The Indian government has increased customs duties on gold, silver and platinum to curb imports and preserve foreign exchange reserves amid rising oil prices from the West Asia conflict.
The government announced the hike on Wednesday, raising the duty on gold and silver from 6 percent to 15 percent and on platinum from 6.4 percent to 15.4 percent. The move follows Prime Minister Narendra Modi’s recent appeal for citizens to reduce non-essential foreign spending and prioritise essentials such as energy and fertilisers.
Imports of gold reached $71.98 billion in 2025-26, up 24 percent from the previous year, while silver imports surged 149 percent to $12.05 billion. Officials cited the need to manage the current account deficit as Brent crude prices have risen 48 percent since February to $107.77 a barrel.
Gold exchange-traded funds reacted immediately, with most rising about 7 percent on Wednesday. Mirae Asset Gold ETF gained more than 8 percent to ₹146 a unit. Analysts expect prices to keep climbing as the duty increase makes physical purchases more expensive.
