A significant decrease in the prices of gold and silver is being discussed as the government considers a decision that will directly impact the jewelry market. According to a Moneycontrol report, the government is studying the possibility of reducing the customs import duty on gold from the current 15 percent to 6 percent. Implementing this decision will lead to a substantial drop in gold prices in the country, and experts also believe that silver prices may decline.
Previously, in May 2026, the government increased the import levy on gold to 15 percent to reduce imports and lower the import bill, as well as stabilize the weakening national currency given the growing pressure on foreign exchange reserves. However, now that the situation has stabilized, the government is again considering the option of reducing this duty.
The reduction of this duty will directly affect the cost of gold in the domestic market, as well as the demand for jewelry in the upcoming holiday and wedding season. India annually imports between 700 and 800 tons of gold from other countries to meet its needs. With the reduction of the import duty, the volume of incoming gold will increase, which in turn will lead to a decrease in its cost.
Using the example of the Delhi jewelry market, where the price of gold is ₹1,63,890 per 10 grams, calculations show that with the import duty reduced from 15 percent to 6 percent, the cost of gold could fall by more than 14,000 rupees. Similarly, the price of 22-carat gold could decrease by more than 13,000 rupees.
If the duty is reduced and there is a fall in the prices of gold and silver, then the value of gold and silver Exchange Traded Funds (ETFs) will also decrease. In such conditions, experts advise investors to make purchases when there is a decline in the prices of Gold-Silver ETFs. (When purchasing Gold-Silver, it is recommended to consult a financial advisor.)