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(You can now subscribe to our(You can now subscribe to our Economic Times WhatsApp channelThe central government is currently discussing a reduction in import duties on gold and silver after higher rates failed to curb imports, Rajesh Rokde, Chairman of the Gems & Jewellery Council, toldThe duty isn't proving effective, said Rokde, adding that the jewellery body had warned earlier that this would fuel illegal trade, and that is exactly what is happening.ALSO READ | India may have found the key to unlock its $5 trillion sleeping fortune “The government might reconsider this policy.
The expectation was that imports would drop, but that didn’t happen, and imports remained largely unaffected, while the grey market expanded significantly.”The government has likely been deliberating on this for a while, and discussions are “certainly” ongoing, though no final decision has been made yet, he stated.ALSO READ | Indians part with old jewellery to cash in on soaring gold prices The government is simply looking for the right window to make a move, Rokde further added.Centre sharply increased customs duties on gold and silver to 15% from 6% in May, to contain pressure on the country’s foreign exchange reserves and external account during the West Asia conflict.India, the second-largest consumer of gold after China, roughly imports close to 700 to 900 tonnes of gold annually.
According to government data, gold imports in FY26 surged 24% to a record $71.9 billion, even as import volumes fell to 721 tonnes.Meanwhile, the yellow metal’s prices today dropped by Rs 2,045 to Rs 1,54,236 per 10 grams in futures trade amid a fall in spot demand.
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as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now!
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
The central government is currently discussing a reduction in import duties on gold and silver after higher rates failed to curb imports, Rajesh Rokde, Chairman of the Gems & Jewellery Council, toldThe duty isn't proving effective, said Rokde, adding that the jewellery body had warned earlier that this would fuel illegal trade, and that is exactly what is happening.ALSO READ | India may have found the key to unlock its $5 trillion sleeping fortune “The government might reconsider this policy. The expectation was that imports would drop, but that didn’t happen, and imports remained largely unaffected, while the grey market expanded significantly.”The government has likely been deliberating on this for a while, and discussions are “certainly” ongoing, though no final decision has been made yet, he stated.ALSO READ | Indians part with old jewellery to cash in on soaring gold prices The government is simply looking for the right window to make a move, Rokde further added.Centre sharply increased customs duties on gold and silver to 15% from 6% in May, to contain pressure on the country’s foreign exchange reserves and external account during the West Asia conflict.India, the second-largest consumer of gold after China, roughly imports close to 700 to 900 tonnes of gold annually. According to government data, gold imports in FY26 surged 24% to a record $71.9 billion, even as import volumes fell to 721 tonnes.Meanwhile, the yellow metal’s prices today dropped by Rs 2,045 to Rs 1,54,236 per 10 grams in futures trade amid a fall in spot demand.
