With gold considered auspicious in Hindu weddings, the duty hike is likely to increase financial pressure on millions of families preparing for marriages.
BY PC Bureau
New Delhi, May 13: The Centre has sharply increased customs duty on gold and silver imports to 15%, a move aimed at curbing rising bullion imports and easing pressure on India’s foreign exchange reserves amid global economic uncertainty.
The duty hike comes at a time when millions of families across India are preparing for the peak Hindu wedding season, traditionally marked by heavy purchases of gold jewellery considered auspicious for brides and ceremonial gifting.
Under the revised structure, the government has raised the basic customs duty to 10% while retaining the 5% Agriculture Infrastructure and Development Cess (AIDC), taking the total effective levy on precious metal imports from 6% to 15%.
The decision comes days after Prime Minister Narendra Modi urged citizens to avoid buying gold for at least a year in order to conserve foreign exchange reserves. India remains one of the world’s largest consumers of gold and relies heavily on imports to meet domestic demand.
The move is likely to hit millions of families preparing for weddings, especially in Hindu households where gold is regarded as an auspicious symbol of prosperity, purity and family honour. From bridal jewellery to gifts exchanged during marriage ceremonies, gold occupies a central place in wedding traditions across much of India. With bullion prices already at record highs, the latest duty hike is expected to significantly increase expenses for middle-class families during the marriage season.
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The Government of India has officially increased the import duty on #Gold and several other precious metals and related items, with the revised rates set to come into effect from midnight tonight (May 13, 2026). As per the Gazette notifications issued by the Ministry of Finance,… pic.twitter.com/xcme90BqEi
— Harish M (@chnmharish) May 12, 2026
Jewellers and traders fear the increase could dampen festive and wedding-related purchases, particularly in small towns and rural areas where buying gold is deeply tied to social customs and cultural expectations. Many consumers are now expected to shift towards lighter ornaments, lower-carat jewellery or exchange old gold instead of making fresh purchases.
Market experts said the higher duty could reduce gold and silver imports, narrow the trade deficit and support the rupee, which has remained under pressure against the US dollar. However, industry insiders warned that steep import taxes may also trigger a rise in smuggling activities, which had declined after tariff cuts introduced in 2024.
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The move is already influencing domestic bullion markets. On Tuesday, MCX gold traded near ₹1,53,200 per 10 grams, while silver hovered around ₹2,74,000 per kilogram amid volatility driven by a stronger dollar and geopolitical tensions in West Asia.
Commodity analysts said immediate resistance for MCX gold is seen around ₹1,54,750–₹1,55,000, while silver could face resistance near ₹2,84,000–₹2,85,000. Despite the duty hike, analysts believe global uncertainty and safe-haven demand may continue to keep precious metal prices elevated.
Industry estimates suggest the higher import duty could reduce India’s gold imports by 10–12% in the coming months. Experts said the government’s broader strategy is to encourage recycling and monetisation of household gold instead of relying on fresh imports. India is estimated to hold nearly 20,000 tonnes of gold in households, much of which remains idle.
