India Keeps Gold and Silver Import Duties Unchanged
India has decided not to increase import duties on gold and silver, according to a government source, despite recent calls by Prime Minister Narendra Modi to discourage gold purchases for a year in light of the ongoing Iran war and its economic impacts.
As the world’s second-largest gold consumer and the largest buyer of silver, India plays a pivotal role in the global precious metals market. The reluctance to raise import duties signals the government’s approach to balancing domestic demand and international market considerations.
Recent data from the World Gold Council (WGC) highlights a shift in the Indian market: for the first time, investment demand for gold surpassed demand for jewelry during the March quarter of 2026. Investors increasingly favor gold as a safe haven amid subdued returns in the equity markets. Investment demand surged by 52% year-on-year, reaching 82 metric tons, while demand for gold jewelry declined by 19.5% to 66 metric tons.
Overall, India’s gold consumption rose by 10.2% to 151 metric tons in the quarter, with the investment segment accounting for more than half (54.3%) of total consumption. This trend underlines a growing preference among both financial institutions and retail investors for gold as part of portfolio diversification or wealth preservation strategies amid economic uncertainties.
Sachin Jain, CEO of the WGC’s Indian operations, remarked on this notable change, emphasizing that the prominence of investment demand over traditional jewelry buying is expected to continue in future quarters.
Despite the Prime Minister’s appeals to reduce gold purchases, the unchanged import duties suggest that the government is not currently using tariff adjustments as a tool to curb demand. Instead, the focus appears to remain on monitoring market developments and investor behavior amid evolving geopolitical challenges.
India’s gold market dynamics continue to be influential globally, with shifts in domestic consumption patterns closely watched by international stakeholders and policymakers.