India hikes bullion import duties as the world's second-largest gold market faces a declining rupee

Gold pure gold bar models captured in Shanghai, China on March 15, 2026. Cfoto | Future Publishing | India , the world's second-largest gold consumer, has raised import duties on gold and silver to 15% from 6%, just days after Prime Minister Narendra Modi urged citizens to curb bullion purchases for a year as overseas purchases pressure the rupee. The government has imposed a 10% basic customs duty and a 5% tax on gold and silver imports, as per notifications issued on Wednesday. India's average monthly gold import rose to 83 tonnes in the first two months of 2026 from an average 53 tonnes in 2025, according to a World Gold Council report released last month. "This was largely supported by strong investment demand during January," the report said. In value terms, India's gold demand nearly doubled year on year during the first quarter of 2026, to a record of $25 billion, as per the report. But this demand for gold inflates the country's import bill, which has already been increasing due to rising global energy prices and the disruptions in the Middle East. India is a net importer of goods, and it ran a merchandise trade deficit of more than $330 billion in the financial year ending March 2026, up from over $280 billion a year ago. Gold and silver were nearly 11% of India's total imports, while crude and petroleum products accounted for 22%. …