India collects Rs 10,463 crore in precious metal customs duties

The Indian government collected approximately Rs 10,463 crore in customs duties from the import of gold, silver, and platinum between May 13 and August 2, 2026. Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that gold imports accounted for the vast majority of this revenue, totaling Rs 10,040 crore, while silver and platinum contributed Rs 328 crore and Rs 95 crore, respectively.

The duty hike, which increased rates for gold and silver from 6% to 15%, was implemented to manage foreign exchange reserves and the current account deficit amid global economic volatility and the crisis in West Asia. To further control imports, the Directorate General of Foreign Trade moved silver into a restricted category requiring a license and capped duty-free gold imports at 100 kg per license under certain schemes.

In addition to revenue collection, enforcement efforts against smuggling have intensified. Between May 13 and June 30, authorities seized approximately 161 kg of smuggled gold, filed 287 cases, and arrested 116 individuals. According to the World Gold Council, India's gold demand fell by 6% year-on-year to 131.4 tonnes between April and June 2026, attributed to the higher duties and seasonal factors.