India Hikes Gold and Silver Import Duties to 15% to Support Rupee

The Indian government has increased the total import duties on gold and silver from 6% to 15%, effective May 13, in a strategic move to stabilize the national currency. The new duty structure is comprised of a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC). Following the announcement, gold prices on India’s Multi-Commodity Exchange (MCX) surged by 6%, reaching INR 162,831 per 10 grams.

This fiscal tightening comes as New Delhi attempts to curb foreign exchange outflows and support the rupee, which has faced pressure from energy price shocks and regional geopolitical conflicts. India remains the world's second-largest consumer of gold, and per market data, such a significant regulatory shift typically impacts domestic demand volumes. Analysts note that this move mirrors previous interventions designed to manage the current account deficit during periods of currency volatility.

Market participants are now monitoring how these domestic hikes will influence global spot prices, which remained at current levels as of the close on May 13, 2026. Looking ahead at the economic calendar, upcoming speeches from Federal Reserve officials, including Goolsbee and Hammack, will be critical catalysts for gold's broader trajectory as investors assess the global interest rate environment.