New Custom Duty on Gold and Silver Effective from 31 January 2026

 New Custom Duty on Gold and Silver Effective from 31 January 2026

The Government of India has announced revised custom duty rates on precious metals, effective 31 January 2026. This update directly impacts the bullion market, jewellers, traders, investors, and industries that rely on gold and silver imports. The change reflects ongoing efforts to regulate imports, stabilize domestic markets, and manage foreign exchange outflows.

Updated Custom Duty Rates (From 31.01.2026)

As per the latest notification, the new custom duty values are:

• Gold: ₹ 9,52,128

• Silver: ₹ 20,957.76

These revised rates will apply to all eligible imports from the effective date and will influence landed costs, pricing strategies, and market sentiment.

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Impact on the Gold Market

Gold continues to be a cornerstone of Indian culture, investment portfolios, and the jewellery industry. The revised custom duty on gold is expected to:

• Increase landed cost of imported gold, especially for bullion dealers and jewellery manufacturers

• Influence retail gold prices, potentially leading to higher consumer prices

• Affect demand patterns, particularly during weddings and festive seasons

• Encourage better inventory planning among jewellers and traders

For investors, higher import costs may reinforce gold’s position as a long-term hedge while also affecting short-term buying decisions.

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Impact on the Silver Market

Silver plays a crucial role not only in jewellery and investment but also in industrial applications such as electronics and solar energy. With the new custom duty set at ₹20,957.76:

• Industrial users may see a marginal rise in raw material costs

• Silver investment products such as coins and bars could witness price adjustments

• Traders may experience short-term volatility as markets absorb the revised duty

Given silver’s dual role as both an industrial and investment metal, price movements may vary based on demand from different sectors.

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What This Means for Traders and Importers

For bullion traders and importers, the revised custom duty emphasizes the importance of:

• Accurate cost calculations while pricing buy and sell rates

• Monitoring international price movements alongside domestic duty changes

• Strategic sourcing and timing of imports to manage margins effectively

Timely compliance with the new duty structure is essential to avoid discrepancies and ensure smooth operations.

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Conclusion

The new custom duty on gold and silver effective from 31 January 2026 marks an important shift for India’s precious metals market. While it may lead to higher import costs, it also brings clarity and structure for businesses planning their procurement and pricing strategies. Investors, traders, and consumers should stay informed and adapt their decisions in line with the revised rates.

Staying updated with such policy changes is key to navigating the dynamic bullion market successfully.