Media reports indicate that the government is considering a reduction in import duties on gold and silver, following concerns that the higher levy has not achieved its intended objective of curbing imports.

According to reports, the discussions are still at an early stage, and no final decision has been taken. The development was attributed to Gems & Jewellery Council chairman Rajesh Rokde, who reportedly said the government was examining whether the current duty structure should be reconsidered.

In this latest development, 15% customs duty on gold and silver, raised from 6% in May, was intended to contain pressure on foreign exchange reserves and the external account. However, import activity has reportedly remained resilient despite the higher levy.

Rokde was reported to have said that the expected reduction in imports had not materialised and that the higher duty had instead widened the grey market. He also indicated that the government could be waiting for a suitable opportunity before making any policy change.

It has been speculated that industry representatives and bullion traders have been seeking a reduction in the duty from the current 15% level, with some reports suggesting a possible return towards the earlier 6% rate. However, the timing and scope of any reduction remain uncertain.

Government data cited in media reports showed that India’s gold imports rose 24% in value during FY26 to a record $71.9 billion, while volumes stood at 721 tonnes.