New Delhi, May 14: In a major move aimed at curbing rising imports of precious metals, the Government of India has increased customs duty on gold and silver to 15% from 6%, triggering a sharp spike in domestic prices of bullion across the country. The decision comes just days after Prime Minister Narendra Modi urged citizens to reduce excessive gold purchases and focus on productive investments. Following the announcement by the Finance Ministry, domestic gold prices surged by nearly ₹9,000–₹10,000 per 10 grams, taking the price of gold close to ₹1.6 lakh per 10 grams in the spot market. Silver prices also witnessed a steep increase of around ₹18,000–₹19,000 per kilogram, pushing rates to approximately ₹2.9 lakh per kg. The government has also raised customs duty on platinum from 6.4% to 15.4%.

India remains the world’s second-largest consumer of gold, with households traditionally investing in jewellery, coins and bullion as a store of wealth. However, policymakers have long expressed concerns that large-scale gold imports put pressure on India’s trade deficit and foreign exchange reserves. Gold is India’s second-largest import commodity after crude oil. According to official data, India’s gold import bill increased by 24% to $72 billion in the last financial year, despite a 5% decline in import volumes to 721 tonnes. The rise in import value was mainly driven by elevated global gold prices.