Gold Import Duty News: India doubles gold, silver tariffs to 10%; Jewellery stocks Titan, Kalyan Jewellers, PC Jeweller in focus

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Gold Import Duty News: The Government of India has increased the import duty on gold and silver from 5 per cent to 10 per cent, a move expected to make imports of precious metals significantly more expensive.

The revised duty structure will come into effect from May 13, 2026, according to a gazette notification issued by the Ministry of Finance.

The notification stated: “In the said notification, in the TABLE, against Sl. No. 1, in column (4), for the entry ‘4.35%’ wherever it occurs, ‘10%’ shall be substituted. This notification shall come into force on the 13th day of May, 2026.”

What does it mean for consumers?

To understand the impact, consider an example: if a trader imports gold worth Rs 10 lakh, the import duty earlier stood at 5 per cent, or Rs 50,000. With the revised 10 per cent duty, the same import will now attract Rs 1 lakh in duty, effectively doubling the tax burden on imports.

The hike in import duty is likely to push up domestic gold and silver prices, as the higher import costs may be passed on to consumers. The move could also affect demand in the jewellery and bullion markets, particularly during the festive and wedding seasons.

“As expected, the government has raised duties to curb the current account deficit. However, this could affect demand, as gold and silver prices were already elevated,” Surendra Mehta, national secretary at the India Bullion and Jewellers Association, told Reuters.

Modi’s appeal to buy less gold

This move by the Ministry of Finance follows Prime Minister Narendra Modi’s appeal to buy less gold, especially for weddings, for about a year, as part of a broader effort to conserve foreign exchange amid a global oil-price shock and weakening external-account stability.

India’s gold demand remains strong

India’s appetite for gold remained resilient during the January-March quarter despite record-high prices, underlining the metal’s growing importance as an investment avenue. According to the World Gold Council, total gold demand in India rose 10 per cent year-on-year to 151 tonnes in Q1 CY2026, while the value of demand nearly doubled to Rs 2.27 lakh crore due to soaring prices.

Investment demand significantly outpaced jewellery consumption during the quarter. Gold investment volumes surged 55 per cent year-on-year, reflecting rising investor preference for gold-backed assets and ETFs amid heightened uncertainty and market volatility.

Jewellery stocks in focus

This announcement by the Government of India could impact major jewellery stocks such as Titan Company, Kalyan Jewellers, PC Jeweller, Senco Gold, and Thangamayil Jewellery, among others.

However, readers should also note that Modi’s appeal weighed heavily on jewellery stocks on May 11 (Monday), due to the sector’s direct exposure to gold consumption and discretionary spending.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)

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