New Delhi – The Indian government has garnered a substantial ₹10,463 crore in revenue from higher import duties on precious metals, including gold, silver, and platinum, implemented earlier this year. This figure represents collections made between May 13 and August 2, as confirmed by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha.
Duty Hikes and Revenue Breakdown
The majority of the revenue, ₹10,040 crore, came from increased duties on gold, which includes gold plated with platinum, unwrought, semi-manufactured, or in powder form. Silver imports contributed ₹328 crore, while platinum fetched an additional ₹95 crore during the same period. The effective customs duty on these precious metals was significantly raised from 6% to 15% on May 13.
Strategic Measures Amid Global Volatility
The decision to hike duties was a strategic move by the government to manage its import bill and safeguard foreign exchange reserves amidst global economic volatility and rising precious metal prices, exacerbated by the West Asia crisis. Beyond the tariff increase, the Directorate General of Foreign Trade (DGFT) also introduced further restrictions. Silver, for instance, was moved to a restricted import category, necessitating a license for importers. Additionally, duty-free gold imports under the advance authorisation scheme were capped at 100 kg per license.
Enforcement and Market Impact
Alongside these policy changes, enforcement efforts intensified. Between May 13 and June 30, authorities seized 160.91 kg of gold, filed 287 cases, and arrested 116 individuals related to illegal precious metal activities, according to the Minister of State for Finance. The increased duties have already shown an impact on domestic demand; the World Gold Council reported a 6% year-on-year decline in India's gold demand, falling to 131.4 tonnes between April and June 2026, attributed to the higher duties and seasonally subdued sales.