India, the world’s second-largest gold importer after China, increased the import duty on gold to 15% from 6% to curb domestic demand amid skyrocketing import bill for the yellow metal. Regulating gold imports has become imperative as the current account is about to face strain from rising costs of imported crude oil and fertilisers due to the Iran conflict. Gold prices in Delhi climbed to Rs 1,65,350 per 10 gm on Wednesday from Rs 1,56,800 a day earlier.
How much gold does India import?
India’s gold imports jumped over 24% to a record $71.98 billion in 2025-26. However, import volumes fell 4.76% to 721.03 tonnes as elevated global prices pushed up the overall import bill.
How much gold does India hold?
The Reserve Bank of India holds 880.52 tonnes of gold. Indian households are estimated to own nearly 30,000 tonnes, valued at around $5 trillion, making it one of the world’s largest private gold holdings, according to Assocham.
Timeline
Pre-2012: Before 2012, India’s gold import duty was not linked to the value of the precious metal. Instead, the government imposed a flat nominal customs duty of Rs 300 per 10 grams on standard gold imports.
January 2012: The government revises the duty structure to align it with rising gold prices. The import duty was changed from a fixed levy to ad valoream (value-based) and set at 2% of the value of the imported mercgandise.
March 16 2012: The Centre doubles import duty to 4%
In 2013, the government raises gold import duties by three times as India grappled with a record-high current account deficit, a weakening rupee and mounting foreign exchange outflows, all directly linked to gold imports.
January 2013: Duty raised to 6% from 4%
June 2013: Duty increased to 8% to from 6%
August 2013: Duty hiked further to 10% from 8%
2014-2018: Between 2014 and 2018, the 10% import duty largely remained the default policy setting
2019: Gold customs duty were raised to 12.5% from 10% to boost revenue and curb imports amid a falling tax-to-GDP ratio
2021 (Union Budget 2021-22): Import duties slashed from 12.5% to 10.75% to combat large-scale smuggling, counter skyrocketing retail prices
2022 : Centre hikes gold import duty to 15% from 10.75% to check current account deficit and rising import of gold
2024 (Union Budget 2024-25): The duty cut to 6% to support the domestic gems and jewellery industry, curb illegal smuggling
2026: Duty raised to 15% (Basic Customs Duty 10% and agri infra cess 5%) amid the West Asia war and pressure on forex reserves. Analysts fear gold smuggling may rise, and imports from the UAE under the bilateral trade pact with that country may increase further due to higher arbitrage.
TOPICSimportThis article was first uploaded on May fourteen, twenty twenty-six, at thirty-eight minutes past one in the night.