NewsPunjab
May 13, 2026
Prime Minister Narendra Modi has appealed to the countrymen to refrain from buying gold for at least a year. Along with this, the central government has increased the import duty on gold, silver and other precious metals by a huge amount. The new rates have come into effect from Wednesday night.
According to the orders issued by the central government, the import tariff on gold and silver has been increased from 6 percent to 15 percent. The government’s aim is to reduce the purchase of precious metals from abroad and reduce the pressure on the country’s foreign exchange reserves.
India is the world’s second largest gold buyer. The country consumes about 700 to 800 tonnes of gold every year, while domestic production is limited to only 1 to 2 tonnes. Due to this, India depends on imports for about 90 percent of its requirements. India’s gold imports reached $ 72 billion during the financial year 2025-26, which is 24 percent more than the previous year.
According to experts, the increase in import duty may reduce the demand for gold in the country. This is likely to reduce India’s trade deficit and provide support to the weakening rupee. If people reduce their gold purchases for a year, then gold imports can decrease by 30 to 40 percent and the country can save up to 20 to 25 billion dollars.
Economists believe that if gold imports are halved, about $36 billion can be saved, which will go a long way in reducing the current account deficit.
