Jewellery and precious metal-related stocks including Titan Company, Kalyan Jewellers India, Senco Gold and PC Jeweller remained in focus after the Government of India announced a sharp increase in import duty on gold, silver, platinum and other precious metals. The revised duty structure came into effect from May 13, 2026, and is expected to influence pricing trends, jewellery demand and overall import volumes in the sector.
The revised notification introduces a total import duty of 15% on precious metals. This includes a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC). The move is part of the government’s broader effort to reduce excessive imports of high-value commodities and manage pressure on India’s foreign exchange reserves and trade deficit.
Revised Duty Structure for Gold and Silver Imports
Under the updated framework, imports of gold, silver and platinum will now attract higher taxation compared to the earlier structure. The new duty regime also impacts imports from countries such as the United Arab Emirates (UAE), where certain concessional rates were previously available under quota-based trade arrangements.
The revised structure extends beyond bullion imports and covers various jewellery-related products and industrial components linked to precious metals. Import duties on gold and silver jewellery findings have been fixed at 5%, while platinum jewellery findings will attract a 5.4% duty. In addition, spent catalysts and ash containing precious metals used for recovery purposes will continue to receive concessional treatment at 4.35%, subject to compliance requirements.
Rising Gold Imports and Economic Concerns
India’s gold import bill has continued to remain elevated during FY26. According to recent trade data, gold imports during the financial year stood at approximately $71.98 billion, reflecting a rise of nearly 24% compared to the previous year. However, despite the increase in value terms, physical import volumes declined by around 4.76% to 721.03 tonnes.
The increase in import value was largely driven by a surge in international gold prices. Average gold prices reportedly climbed to nearly $99,825 per kilogram during FY26 compared to around $76,617 per kilogram in FY25. Higher global bullion prices significantly increased India’s import expenditure even though actual consumption volumes remained relatively lower.
Impact on Trade Deficit and Currency Pressures
Gold continues to account for a sizeable share of India’s overall imports, contributing more than 9% of total inbound trade during the financial year. At the same time, India’s trade deficit widened to approximately $333.2 billion in FY26.
The government’s decision to raise import duties is aimed at moderating import demand and easing pressure on the current account deficit. Reserve Bank of India data had earlier indicated that the current account deficit stood at 1.3% of GDP during the December quarter, with higher commodity imports contributing to external sector pressures.
Jewellery Sector Stocks Remain in Spotlight
Following the notification, market participants closely tracked jewellery sector stocks including Titan Company, Kalyan Jewellers India, Senco Gold and PC Jeweller as the revised duty structure may influence raw material costs, pricing strategies and demand conditions across the organised jewellery industry.
Summary
The Government of India has increased import duty on gold, silver, platinum and other precious metals to 15%, effective May 13, 2026. The revised structure includes a 10% customs duty and 5% AIDC, impacting bullion imports as well as jewellery-related products. The move comes amid rising gold import values, widening trade deficits and pressure on foreign exchange reserves. Jewellery stocks such as Titan Company, Kalyan Jewellers India, Senco Gold and PC Jeweller remained in focus following the announcement.
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