India to Keep Gold Import Duty Unchanged Despite Modi's Call to Curb Buying
India's government said it has no plans to raise gold import duty despite Prime Minister Narendra Modi's appeal for households to reduce purchases. The decision eases pressure on the bullion market in one of the world's largest gold consumers but keeps current-account concerns in focus.
Sources in India's Ministry of Finance confirmed to the Economic Times that the duty on gold imports will not change in the near term. Prime Minister Modi last week urged households to channel their savings into productive assets instead of gold.
India, one of the world's largest gold importers, historically sees strong physical demand during the wedding season and festivals. With no new tariff in place, investors are pricing in stable import costs, leaving only limited upward pressure on domestic gold prices.
Economists say that if global gold prices remain elevated, India's 2026 current-account balance could come under strain. The government is trying to shift part of physical demand into its sovereign gold bond programme and digital gold instruments, officials said.
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