Govt hikes gold, silver import duty to 15%; jewellery demand seen falling 50-60 tonnes annually
India sharply raised import duty on gold and silver to 15% from 6%, and platinum to 15.4%, citing forex concerns. UAE CEPA tariff rate quota duty also lifted to 14%. The move could shave 50-60 tonnes off annual gold demand and save $6-9bn in imports, but squeezes jewellery retailers facing higher input costs.
Government sharply raised import duty on gold and silver to 15% from 6%, and platinum to 15.4%, to conserve forex. UAE CEPA tariff rate quota duty also hiked to 14%. Move could cut gold demand 50-60 tonnes annually, hitting jewellery retailers.
Why this matters
Duty hike follows PM Modi's call for Indians to curb gold purchases for a year and aligns with forex-conservation push. It widens UAE-CEPA arbitrage, likely swelling Dubai gold inflows.
Retail-company signals steady at 2,015 over the last 90 days.