The Indian government is considering a reduction in import duties on gold and silver, after higher tariffs failed to curb imports and instead contributed to a rise in unofficial trade, according to Gems & Jewellery Council chairman Rajesh Rokde.
The government had raised the gold import duty from 6% to 15% in May 2026 as part of measures aimed at controlling precious-metal imports. However, industry representatives say the higher levy has widened the gap between legal and grey-market supplies without significantly reducing demand.
Industry sources have suggested that the government could consider bringing the duty back towards 6%, although no final decision has been taken. A lower duty could reduce incentives for smuggling and support the formal gems and jewellery trade.
The move comes as India continues to face strong demand for precious metals despite elevated prices and import costs. Gold imports had reached record levels in 2025, while silver imports also surged, highlighting the difficulty of using higher tariffs alone to suppress demand.
A reduction in duties would also be closely watched by jewellers, bullion traders and consumers, as it could lower domestic landed costs and influence gold and silver prices in the Indian market.