New Delhi|Kolkata: India has no strategies to increase import tasks on gold and silver imports, a federal government authorities stated on Monday. The remark comes a day after Prime Minister Narendra Modi advised people to prevent buying gold for a year in the middle of the financial pressures from the Iran dispute.
India is the world’s second-largest customer of gold and the biggest customer of silver, relying greatly on imports to satisfy domestic need. “At present, there are no plans to raise duties on gold and silver imports,” stated the authorities, dismissing issues over possible curbs on global deals.
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India’s gold imports increased 24.1% year-on-year to $72 billion in FY26, while silver imports rose 149.6% to $12.1 billion. Together, the 2 metals represented 10.8% of the nation’s overall imports in the last.
Greater gold imports, integrated with raised petroleum rates, can broaden the trade deficit and boost pressure on both the rupee and forex reserves.
The gold trade, nevertheless, fears a task modification, and stated it might bring more family gold into the marketplace as customers might get greater rates for their holdings, while likewise putting a look at financial investment need for gold, which in turn might assist control the bank account deficit.
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“Smuggling, however, will rise if the import duty is hiked. The import duty may go up steeply to 15%,” stated Surendra Mehta, secretary of the India Bullion & Jewellers Association(IBJA). Pleasure Alukkas, chairman of the Joy Alukkas Group, stated, “The immediate impact will be on business, which could decline by 15%.”
Shares of Titan fell 6.73%, Kalyan Jewellers 9.27% and Senco Gold by 8.52% following the Prime Minister’s statement. Prior to the lowering of import responsibility to 6%, almost 100-120 tonnes of gold utilized to get in India through the grey market.
“With nearly 20,000 tonnes of gold lying idle in Indian households, there is a strong need for the government and industry stakeholders to work together to mobilise this dormant asset. Given the Prime Minister’s commentary, there is also a possibility of an increase in gold import duty going forward,” stated Suvankar Sen, MD & & CEO of Senco Gold & & Diamonds.
At the exact same time, the jewellery market is currently adjusting through lower-weight and lower-carat items to preserve price for customers. If these patterns continue, India’s yearly gold imports might possibly decrease to almost 550 tonnes, compared to the historic average of around 700 tonnes.
The option might not lie just in minimizing need, however likewise in opening the tremendous worth of existing gold through a transparent and regulated Gold Monetisation Scheme (GMS). “A revitalised, jeweller-integrated GMS can help mobilise idle household gold, reduce dependence on imports and strengthen the formal economy,” stated Rajesh Rokde, chairman of the All India Gem & & Jewellery Domestic Council.
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The size of the Indian gold market was 7,51,490 crore in 2025 in worth terms and 710.9 tonnes in volume terms, according to the World Gold Council. Of this, jewellery represented 4,54,390 crore (430.5 tonnes), while financial investment need stood at 2,97,100 crore (280.4 tonnes). Arranged retail jewellers such as Tanishq, Kalyan Jewellers, Malabar Gold & & Diamonds and Senco Gold represent 35% of the marketplace, while the rest is controlled by unorganised gamers.
The digital gold sector, which has actually been proliferating, is likewise most likely to be struck by the Prime Minister’s statement. “The business may get impacted in the short term. We have to wait and watch,” stated Gaurav Mathur, MD of SafeGold, a digital gold platform. “If consumers respond positively to this appeal, even a 25-50% reduction in gold demand could significantly ease pressure on India’s foreign exchange reserves and help stabilise the rupee against the dollar,” stated Mahendra Luniya, chairman of Vighnharata Gold, a Pune-based digital gold platform.
Surprisingly, a comparable circumstance was seen throughout 2012-2013, when India’s bank account deficit and pressure on the rupee increased greatly. To manage gold imports, the federal government presented the 80:20 guideline, under which just 80% of imported gold might be offered locally, while 20% needed to be re-exported as jewellery before fresh imports were allowed. Banks and traders likewise dealt with tighter limitations, import tasks were raised substantially, and general gold imports were carefully controlled.
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