Gold imports drop 70 pc to 30 tonnes after duty hike: Official

India’s gold imports fell nearly 70% to 25-30 tonnes after customs duty on gold was raised to 15% from 6%. Despite lower volumes, import value increased due to rising prices. The government aims to reduce foreign exchange outflow and prioritise essential imports

New Delhi: India’s gold imports have reduced about 70 per cent to 25-30 tonnes after customs duty on the yellow metal was more than doubled to 15 per cent, an official said on Thursday.

Effective May 13, import duty on gold and silver has been increased to 15 per cent from 6 per cent.

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“Gold imports have been reduced to 25-30 tonnes after an import duty hike in a month, from 75-100 tonnes earlier,” the official said.

However, in value terms, India’s gold imports rose by 34 per cent year-on-year to USD 3.41 billion in May, driven by higher prices of the precious metal.

During April-May 2026-27, gold imports surged 60.14 per cent to USD 9.04 billion.

In the last FY26l, gold imports rose 24 per cent to hit an all-time high of USD 71.98 billion. In volume terms, however, imports dipped 4.76 per cent to 721.03 tonnes.

Gold imports in India, the world’s second-biggest gold consumer after China, are driven by the jewellery industry demand. Such imports involve substantial outflow of foreign exchange.

The duty hike came after Prime Minister Narendra Modi’s clarion call for curbing gold purchases and adopting austerity measures to reduce avoidable foreign exchange expenditure.

The precious metal accounts for over 5 per cent of the country’s total imports.

The uncertainties in West Asia are expected to balloon India’s import bill, and the government wants to prioritise forex expenditure towards essential imports like crude oil, fertilisers, industrial raw materials and capital goods that directly support economic activity and food security.