New Delhi [India], May 13 (ANI): The Indian government has sharply hiked customs duties on precious metals like gold, platinum and silver, citing the need to conserve foreign exchange and protect the economy from growing global pressures stemming from the ongoing West Asia crisis.
Import duty on gold and silver has been raised from 6% to 15%, while platinum will now attract a duty of 15.4%, up from 6.4%. The changes also apply to related items such as gold and silver dore, coins, and findings.
Sources in the Finance Ministry said the move is aimed at moderating non-essential imports at a time when geopolitical tensions are driving volatility in crude oil markets and disrupting international shipping routes. As a major oil importer, India faces heightened risks of a widening Current Account Deficit (CAD) and inflationary pressure if foreign exchange outflows are not carefully managed.
"India's foreign exchange resources must be prioritised towards essential imports such as crude oil, fertilisers, industrial raw materials, defence requirements, critical technologies, and capital goods," sources in the Finance Ministry said, adding that precious metals, while culturally significant, are largely consumption and investment driven and involve substantial foreign exchange outflows with relatively limited industrial linkages.
Finance Ministry sources were quick to clarify that the measure is not prohibitory. "It is a carefully calibrated and proportionate intervention designed to encourage moderation -- not a ban," they said, emphasising that consumer choice and market flexibility are being preserved.
The duty hike reverses a reduction made in the Union Budget 2024-25, when duties on gold and silver were cut from 15% to 6% and on platinum from 15.4% to 6.4%, reflecting more comfortable economic conditions at the time. Finance Ministry sources indicated that duty rates have historically moved in both directions depending on macroeconomic conditions, and a future reduction remains possible if external pressures ease.
The decision also aligns with the broader economic discipline advocated by Prime Minister, who has urged citizens to reduce avoidable foreign expenditure, conserve fuel, and support national economic resilience through responsible consumption.
Finance Ministry sources described the move as preventive and forward-looking, aimed at reducing vulnerability to external shocks before pressures intensify further, rather than resorting to harsher tools such as quantitative import restrictions. (ANI)