Overview
- The Finance Ministry, which notified the change Wednesday, set the levy at a 10% basic customs duty plus a 5% Agriculture Infrastructure and Development Cess and lifted platinum duty to 15.4%.
- Officials framed the step as a price-based curb on non‑essential bullion imports to narrow the trade gap and protect scarce dollars as higher oil and fertiliser costs strain the external account.
- Domestic prices jumped after the announcement, with gold and silver surging in Indian markets as higher taxes raised import costs and filtered quickly into retail quotes.
- Equities had already reacted to the policy push, as jewellery stocks tumbled Monday after Prime Minister Narendra Modi urged people to defer gold purchases for a year.
- Industry groups warned the higher rate could revive smuggling and soften wedding‑season demand, noting India’s gold import bill hit a record $71.98 billion in 2025–26 and that a recent 3% IGST on bullion had already driven April imports to near 30‑year lows.