How custom duties have impacted Gold and Silver prices over the last 5 years

1 / 9

As the Union Budget 2026 approaches on February 1, investors and consumers are closely tracking possible policy changes affecting gold and silver prices in India here are all the updates you need

2 / 9

As the Union Budget 2026 approaches on February 1, investors and consumers are closely tracking possible policy changes affecting gold and silver prices in India, given the country’s heavy dependence on imports.

3 / 9

Over the past five Union Budgets, customs duty revisions and regulatory measures have played a major role in shaping domestic pricing, demand, and trade of precious metals.

4 / 9

In the 2021 Union Budget, the government cut basic import duty on gold and silver bars to 7.5% from 12.5% to curb smuggling and lower costs, while introducing a 2.5% Agriculture Infrastructure and Development Cess (AIDC).

5 / 9

The 2021 announcement triggered an immediate market reaction, with gold futures falling over 3% after Finance Minister Nirmala Sitharaman’s surprise move.

6 / 9

In 2022, no changes were made to gold and silver customs duties in the Budget, although India later raised gold import duty in July, maintaining policy continuity despite industry calls for reductions.

7 / 9

The 2023 Budget increased silver’s basic customs duty from 7.5% to 10%, and AIDC from 2.5% to 5%, aligning silver duties with gold and platinum, leading to a 2% jump in domestic silver prices.

8 / 9

A major shift came in 2024, when customs duties on gold, silver, and platinum were sharply reduced—total gold duty fell from 15% to 6%, while AIDC was lowered to 1%, boosting affordability and domestic jewellery manufacturing.

9 / 9

In Budget 2025, duties remained unchanged at 6%, but new tariff lines for gold and silver were introduced, potentially impacting future taxation, while reduced duties on jewellery and platinum findings supported retailers and consumers.