13 May,2026 08:37 AM IST | New Delhi | mid-day online correspondent
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The Centre has revised customs duty rates on several precious metal imports, including gold, silver and platinum-related products, in a move aimed at tightening control over non-essential imports and managing foreign exchange pressures.
According to a notification issued by the Ministry of Finance, the revised duty structure came into effect on May 13. Under the new framework, gold and silver findings will now attract a customs duty of 5 per cent, while platinum findings will face a 5.4 per cent duty.
The government has also fixed a concessional customs duty rate of 4.35 per cent on imports of spent catalysts and ash containing precious metals, subject to strict compliance conditions and environmental clearances.
In a separate measure, the government has raised the overall import duty on gold and silver to 15 per cent from 6 per cent by increasing the social welfare surcharge and agriculture infrastructure and development cess. The revised rates are expected to significantly increase the landed cost of precious metals in India.
The Finance Ministry also issued detailed definitions of products covered under the revised customs regime to avoid confusion in classification and taxation.
As per the notification, "findings" refer to small jewellery components such as hooks, clasps, clamps, catches, pins and screw backs used in gold, silver and platinum ornaments.
Industry experts believe the revised rates could increase manufacturing costs for jewellers dependent on imported components and specialised precious metal inputs.
The government had earlier reduced customs duty on gold to 6 per cent in the 2024-25 Union Budget to support the domestic gems and jewellery industry and discourage illegal smuggling. However, the latest revision marks a reversal amid rising economic concerns linked to global geopolitical tensions.
The concessional 4.35 per cent duty on spent catalysts and ash containing precious metals will only be available to importers who comply with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022.
Importers must provide an undertaking to customs authorities declaring the percentage of precious metals contained in the imported material and confirm that the goods are meant solely for recovery or recycling purposes.
The revised framework also mandates environmental approval from the Ministry of Environment, Forest and Climate Change for imports involving recovery and recycling activities. Officials said the conditions are intended to regulate the handling of potentially hazardous materials while ensuring that imported waste is processed through authorised channels only.
The customs duty revision comes days after Prime Minister Narendra Modi appealed to citizens to adopt austerity measures in response to the economic impact of the ongoing West Asia crisis and rising global crude oil prices.
Addressing a rally in Hyderabad, PM Modi urged people to postpone gold purchases for weddings, reduce unnecessary foreign travel and cut fuel consumption wherever possible. He also encouraged greater use of public transport, electric vehicles, rail transport and work-from-home practices to conserve foreign exchange reserves.
India is facing pressure from rising import costs linked to the ongoing US-Iran conflict and disruptions in the Strait of Hormuz, a critical shipping route for oil and LPG supplies. The country imports nearly 60 per cent of its LPG requirements, with a major portion routed through the Strait.
India's gold imports surged more than 24 per cent to a record USD 71.98 billion in 2025-26 despite a decline in import volumes. Rising global prices have pushed domestic gold rates sharply higher in recent months.
In Delhi, gold prices climbed to Rs 1,56,800 per 10 grams on Tuesday, while silver prices jumped to Rs 2,77,000 per kilogram. Meanwhile, the Indian rupee weakened to a record low of 95.63 against the US dollar amid concerns over inflation, the current account deficit and foreign exchange outflows.
