Gold Prices Set to Surge? Centre Hikes Gold, Silver Import Duty to 15% Amid West Asia War Fears

The move comes just days after Narendra Modi urged citizens to avoid unnecessary spending and delay gold purchases to help conserve foreign exchange reserves during the global crisis.

According to government officials, the decision aims to protect India’s economy from rising external risks linked to volatile crude oil prices, disrupted shipping routes and mounting geopolitical tensions in West Asia. Import duty on platinum has also been increased from 6.4% to 15.4%.

Officials said India, being heavily dependent on imported crude oil, faces increasing pressure on inflation, fuel costs and the current account deficit due to instability in global energy markets. By raising duties on precious metals, the Centre hopes to reduce non-essential imports and preserve foreign exchange for critical sectors such as energy, fertilisers, defence equipment, industrial raw materials and technology.

The government clarified that the decision is not intended to discourage consumers completely but to moderate demand during a period of economic uncertainty. Officials described the measure as a “calibrated and proportionate intervention” aimed at strengthening macroeconomic stability and reducing vulnerability to external shocks.

The move is expected to impact jewellery prices across India, especially during the upcoming festive and wedding seasons when gold demand traditionally rises. Industry experts believe domestic gold prices may increase further if global tensions continue and crude oil prices remain elevated.

Officials also pointed out that customs duties on precious metals have historically been adjusted depending on global and domestic economic conditions. In the Union Budget 2024–25, duties on gold and silver were reduced from 15% to 6% when India’s macroeconomic position was considered more stable. The latest hike signals that the government is now taking a more cautious approach as geopolitical uncertainty intensifies.

The Centre said the policy reflects a broader national effort to strengthen economic resilience during extraordinary global conditions. Officials added that instead of imposing stricter restrictions on imports, the government chose a price-based disincentive that still preserves market flexibility and consumer choice.

The decision has already sparked discussions among traders, jewellers and investors, with many closely watching how the duty hike could affect gold demand, retail prices and India’s import bill in the coming months.