Amid a rising import bill due to the West Asia crisis, the government has hiked import duties on gold and silver to 15 per cent from 6 per cent as part of measures to curb inbound shipments of precious metals. India's gold imports surged more than 24% to an all-time high of $71.98 billion in 2025-26. However, in volume terms, the shipments dipped 4.76% to 721.03 tonnes in 2025-26. The prices of gold have risen from $76,617.48/KG in FY25 to $99,825.38/KG in FY26.
In the national capital, the price of gold increased by Rs 1,500, or nearly 1%, to Rs 1,56,800 per 10 grams on May 12, 2026, from May 11, 2026 closing level of Rs 1,55,300 per 10 grams. Silver prices also advanced by Rs 12,000, or 4.53 per cent, to Rs 2,77,000 per kg. In the international market, spot gold slipped $42.33, or 1%, to $4,692.64 per ounce, while silver fell 3.04% to $83.49 per ounce.
The government in the 2024-25 budget had cut customs duty on gold to 6% to boost the domestic gems and jewellery industry, curb illegal smuggling, and bring down local prices. In 2022, India had raised gold import tax to 15% to check CAD (capital account deficit) amid a falling rupee due to the Russia-Ukraine war that began in February 2022. India is the world's second-biggest gold consumer after China. The imports are largely driven by the jewellery industry.
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