Recently, the India raise the import duties on gold, silver, and platinum. It reflects the policy change to protects the country’s currency and foreign exchange reserves. This decision taken amid rising global tensions, that increase commodity prices and weakening country currencies. It impacts India’s economy, which relies heavily on imports.
Duty Hike Details and Market Reaction in India
India raised import duties on gold and silver from 6% to 15%, and on platinum from 6.4% to 15.4%. The new policy aims to reduces non-essential imports and safeguard foreign exchange reserves. It decline the reserves and were around the $690.69 billion by early May 2026. By May 12, 2026, the Indian Rupee had weakened to around 95.64 against the US Dollar, showing significant depreciation over the past year.
Economic Pressures and Jewelry Sector Valuations
India situation is worsened by its heavy dependence on imported oil, with prices around $103.8 per barrel due to tensions in the Middle East. High oil import costs make the trade balance worse, weaken the rupee, and increase inflation, which was 3.48% in April 2026 and may rise further due to energy prices.
RBI has tried to manage rupee volatility but has not been able to stop its decline. This indicates that policy actions like import limits may be needed.
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