Gold Buyers Hit Hard as Government Raises Import Duty on Gold and Silver!

Gold and silver buyers across the country received a major shock after the Central Government increased the import duty on precious metals to 15 percent with immediate effect. The revised rates also include a 15.4 percent duty on platinum, while an additional 3 percent GST will continue to apply on purchases. The move is aimed at reducing non-essential imports and controlling the outflow of foreign exchange reserves amid rising economic pressures. The government is reportedly prioritising critical imports such as crude oil and fertilisers while attempting to stabilise the value of the Indian rupee.

Industry experts believe the sharp hike in duties could significantly impact jewellery purchases and investment demand in the coming months. The decision comes shortly after Prime Minister Narendra Modi urged citizens to avoid unnecessary gold purchases and focus on economic discipline during global financial uncertainties. Officials say the higher duties are intended to curb excessive imports, reduce dollar outflow, and protect India’s foreign exchange reserves. However, traders fear the increase could also encourage unofficial gold trade and smuggling activities in the market.