India has increased import tariffs on gold and silver to 15%, reversing previous reductions in an effort to curb precious metal imports and support the weakening rupee. The Finance Ministry announced the changes, effective from May 13, through multiple customs notifications. The basic customs duty on gold and silver imports has been raised from 5% to 10%, while the existing 5% Agriculture Infrastructure and Development Cess (AIDC) remains, leading to a total effective import tax of 15%. This decision comes as India grapples with a rising current account deficit and currency pressures due to increasing crude oil prices and a surge in bullion imports. In 2025, gold imports increased by 1.6% year-on-year to $58.9 billion, and silver imports rose by 44% to $9.2 billion. Prime Minister Narendra Modi has encouraged citizens to avoid non-essential gold purchases to help conserve foreign exchange reserves. While the government believes that higher tariffs will help reduce imports, industry executives warn that it may also lead to a resurgence in smuggling activities.