---
title: India hikes bullion import duties as the world’s second-largest gold market faces a declining rupee.
description: "India has increased import duties on gold and silver from 6% to 15% (including basic customs duty and a 5% Agriculture Infrastructure Cess), significantly raising domestic prices by roughly ₹12–13 lakh per kg for gold and ₹24,000–25,000 per kg for silver. The move is aimed at curbing a sharply rising import bill, with gold imports reaching a record $71.98 billion in FY26 and silver imports surging 162%, amid broader macro pressures such as higher crude prices, a weaker rupee, and geopolitical uncertainty. Authorities expect a potential 15–20% reduction in imports, saving $10–15 billion in foreign exchange outflows, though past patterns suggest possible offsets through smuggling, unofficial premiums, and higher recycling. The policy may also be part of a broader effort to shift household wealth away from physical gold holdings toward financial assets, but it remains unclear whether this is a temporary measure or a structural shift. Source: CR"
---

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# [India hikes bullion import duties as the world’s second-largest gold market faces a declining rupee.](https://blog.syzgroup.com/syz-the-moment/india-hikes-bullion-import-duties-as-the-worlds-second-largest-gold-market-faces-a-declining-rupee)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | May 13, 2026, 2:55:34 PM

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