Gold, Silver Import Tariff Increased to 15% to Protect Forex Reserves; Gold Surges ₹13,910 per 10 gm

Mumbai, May 13: The government sharply raised import tariffs on gold and silver to 15 per cent from 6 per cent on Wednesday, as the it moved to curb overseas purchases of the precious metals and ease mounting pressure on the country’s battered foreign exchange reserves. The revised duty structure comprises a 10 per cent basic customs duty and a 5 per cent Agriculture Infrastructure and Development Cess on gold and silver imports — taking the effective import tax to more than double its previous level.

The higher duties are expected to help narrow India’s widening trade deficit and lend some support to the rupee, which has been among Asia’s worst-performing currencies this year. The move comes days after Prime Minister Narendra Modi urged citizens to avoid buying gold for a year to preserve the country’s foreign exchange, and follows Indian banks resuming gold imports earlier this week after a month-long halt.

Gold Prices Surge on Wednesday

Gold prices surged sharply on Wednesday as the steep hike in import tariffs drove domestic rates significantly higher, with 24-karat gold jumping ₹13,910 to trade at ₹1,67,890 per 10 grams from Tuesday’s closing level of ₹1,53,980. Rates for 22-karat gold (91.6% purity) climbed ₹12,750 to ₹1,53,900 per 10 grams, up from ₹1,41,150 on Tuesday, while 18-karat gold (75% purity) rose ₹10,430 to ₹1,25,920 per 10 grams from ₹1,15,490 the previous day. The across-the-board surge reflected an immediate market repricing of domestic gold to account for the near-doubling of import duties, with jewellers and bullion dealers scrambling to adjust inventory valuations even as retail demand showed signs of hesitation at the sharply elevated price points.

The tariff hike comes on the heels of a volatile few sessions for Indian gold rates. Prices had rallied on Tuesday after crashing on Monday, with 24K gold recovering ₹1,850 to ₹1,53,980 per 10 grams on May 12. Wednesday’s jump of ₹13,910 per 10 grams in 24K gold is, however, of a different order entirely — driven not by global market forces but by a domestic policy intervention aimed squarely at reducing India’s import bill. Industry officials have flagged that at 15 per cent effective duty, the premium of Indian gold prices over international rates widens considerably, historically the threshold at which grey market and smuggling channels become economically viable again, potentially undermining the very import-curbing objective the government seeks to achieve.

City-Wise Gold Rates

Chennai continued to quote the highest gold prices among India’s major cities on Wednesday, with 24K gold at ₹1,68,000 per 10 grams, 22K gold at ₹1,54,000 per 10 grams, and 18K gold at ₹1,28,600 per 10 grams. Delhi was the second most expensive market, quoting ₹1,68,040 for 24K, ₹1,54,050 for 22K, and ₹1,26,070 for 18K gold per 10 grams. Gujarat cities of Vadodara and Ahmedabad were both quoting a marginal premium to the national price, at ₹1,67,940 for 24K, ₹1,53,950 for 22K, and ₹1,25,970 for 18K gold per 10 grams. Mumbai, Kolkata, Bangalore, Hyderabad, Kerala and Pune were all in line with the national benchmark, quoting ₹1,67,890 for 24K, ₹1,53,900 for 22K, and ₹1,25,920 for 18K gold per 10 grams.

Gold Rates Across Indian Cities – Wednesday, May 13, 2026 (Per 10 gm)

Source:

• goodreturns.in | Wednesday, May 13, 2026