India has sharply increased customs duties on precious metals and jewelry findings, effective May 13, in a move aimed at curbing non-essential imports and protecting foreign exchange reserves. Overseas jewelry buyers sourcing from or supplying to India should expect higher landed costs for gold, silver, platinum, and related components, potentially affecting pricing and supply chain planning.
Duty rate changes
The Ministry of Finance raised import duty on gold and silver from 6% to 15%, and on platinum from 6.4% to 15.4%. Consequential adjustments apply to gold and silver dore, coins, findings, and other related items. Gold and silver findings now attract 5% duty, while platinum findings are subject to 5.4%.
Definition of findings
The notification defines jewelry findings as "small component such as hook, clasp, clamp, pin, catch, screw back used to hold the whole or a part of a piece of jewellery in place." This clarification helps importers classify components correctly under the revised tariff structure.
Concessional rates for recovery materials
Imports of spent catalysts or ash containing precious metals are eligible for a concessional duty of 4.35%, subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022. Importers must provide an undertaking on the percentage of precious metals and confirm the material is for recovery. A certificate from the Ministry of Environment, Forest and Climate Change is also required.
Policy rationale
The government stated the revision aims to safeguard macroeconomic stability, conserve foreign exchange reserves, and moderate non-essential imports amid global uncertainty from the West Asia crisis. Volatility in crude oil markets and shipping routes has raised concerns over import costs and supply disruptions. As India is a major crude oil importer, higher energy prices could pressure inflation and widen the Current Account Deficit.
What buyers should watch
Overseas buyers importing finished jewelry, findings, or precious metals into India should factor in the higher duty rates when quoting prices or planning shipments. The increased cost may also affect India's competitiveness as a sourcing destination for gold and silver jewelry. Buyers sourcing from India should confirm with suppliers whether duties are passed through or absorbed. Those exporting to India should review Incoterms and duty liability clauses in contracts.
Source: Read the original report | Published: May 13, 2026