Gold and silver prices import prices have been slashed by the government, reducing the notional value used to calculate customs duty and easing the duty burden on imports, according to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC), even as global prices of the precious metals hover near record highs.
The base import price of gold has been cut by about $50 to $1,518 per 10 grams, while that of silver has been reduced by over $800 to $2,657 per kilogram. The revised prices apply to gold and silver imported in any form under specified tariff headings.
The duty reduction also covers high-purity gold bars and coins, and silver bullion and medallions, but exclude jewellery, articles made of precious metals and imports through post, courier or baggage.
The base import price of silver was last revised on January 27, while gold prices were last reset on January 22. The government typically revises base import prices of precious metals every fortnight.
With gold and silver prices touching record highs, the value of imports is estimated to rise sharply even if volumes remain unchanged, stoking concerns over a widening trade deficit and further putting pressure on the rupee, which has already weakened significantly against the dollar in recent times.
The import reduction comes at a time when trade and industry officials were cautious on the imports and had flagged that these risks could prompt the government to consider raising import duties on gold and silver in the coming weeks.
India is the world’s second-largest consumer of gold and the largest market for silver, but it meets nearly all of its gold demand through imports and depends on overseas supplies for over 80% of its silver requirements.
The country spent close to a tenth of its total foreign exchange reserves on gold and silver imports last year, and the import bill is expected to rise further in 2026 as prices of both metals continue to surge.
Source Name : Economic Times