Gold import duty hike yields Rs 10,463 crore in 3 months; 161 kg seized in crackdown

In a significant boost to government finances, the Centre collected Rs 10,463 crore in customs duty on precious metal imports between May 13 and August 2, 2026. The revenue surge follows a sharp increase in import duties on gold, silver, and platinum, according to data tabled in Parliament.

Gold accounted for nearly the entire collection, contributing Rs 10,040 crore, including gold plated with platinum. Silver added Rs 328 crore, while platinum brought in Rs 95 crore. The figures were shared by Minister of State for Finance Pankaj Chaudhary in a written reply in the Lok Sabha on August 10.

The government raised the effective import duty on gold and silver from 6 per cent to 15 per cent, and on platinum from 6.4 per cent to 15.4 per cent, effective May 13. The higher rates also apply to products such as gold and silver dore, coins, and findings. The move was aimed at discouraging non-essential imports and reducing pressure on India's foreign exchange outgo.

Alongside the revenue increase, enforcement agencies intensified action against illegal imports. Between May 13 and June 30, authorities registered 287 cases and seized 160.91 kg of gold, resulting in 116 arrests. Minister of State for Commerce and Industry Jitin Prasada, in a separate written reply, said Customs field formations and the Directorate of Revenue Intelligence (DRI) are continuously monitoring smuggling activities and remain prepared to detect and prevent them.

The government also addressed a long-standing question about gold held by Indian households. In response to a query from Trinamool Congress MP Mala Roy, Chaudhary said the government does not maintain data on the amount of idle gold held by families. There is no official estimate of household gold stored in lockers, cupboards, or bank vaults.

Separately, the government clarified the status of the Reserve Bank of India's gold holdings. As of May 29, 2026, the physical gold stock held as part of India's foreign exchange reserves stood at 880.52 tonnes. The RBI also issued a press release on June 3 stating it had not sold any gold, dismissing earlier reports as incorrect. This clarification is crucial as RBI's gold reserves form a key component of the country's foreign exchange holdings.

The data presents two clear outcomes of the duty hike: enhanced revenue from legal imports and rigorous enforcement against illegal trade. While the higher duties have made imported precious metals costlier, they have also prompted a stricter vigil at borders and airports.

With gold being a culturally significant asset in India, the impact of these measures will be closely watched. The government's focus remains on curbing non-essential imports while ensuring that the precious metals trade operates within legal channels.