No Plan to Raise Duties on Gold, Silver Imports: Indian Govt Official

Why It Matters

Keeping duties steady aims to balance consumer demand with foreign‑reserve preservation, while the trade‑agreement loopholes could undermine fiscal discipline. The policy stance also signals how the government navigates economic pressures ahead of key state elections.

Key Takeaways

• Gold and silver duties stay at 6% across all forms.
• Imports hit $58.9 bn in 2025, up from $36.5 bn.
• PM Modi urged a year‑long gold pause to protect reserves.
• Experts call for reviewing UAE tariff concessions under India‑UAE FTA.
• No duty hike expected despite upcoming state elections.

Pulse Analysis

India’s decision to keep gold and silver import duties at 6% reflects a delicate trade‑off between protecting foreign‑exchange reserves and avoiding a sharp slowdown in consumer demand for precious metals. The country’s gold‑bar imports have surged to $58.9 billion in 2025, a 61% jump from 2022, putting pressure on the balance of payments. By maintaining the current duty structure, the government hopes to curb the import bill without triggering a market shock, while still encouraging legitimate trade.

Prime Minister Narendra Modi’s public appeal for a year‑long pause on gold purchases adds a political layer to the economic calculus. Coming shortly after state elections in West Bengal and Tamil Nadu, the plea signals a broader effort to rally public sentiment around national‑interest spending, especially as the prolonged US‑Israel war with Iran strains global liquidity. While the advisory is voluntary, it underscores how fiscal policy can be reinforced through leadership messaging, potentially tempering demand without formal tariff adjustments.

The India‑UAE free‑trade agreement, which offers preferential tariff treatment for precious metals, is now under scrutiny. Analysts argue that the concessions have accelerated the import surge, eroding the intended benefits of the FTA. A review of these provisions could recalibrate trade flows, ensuring that tariff concessions do not inadvertently weaken reserve buffers. Going forward, policymakers will need to balance open‑market commitments with safeguards that protect macro‑economic stability, especially as India navigates post‑election economic reforms.