Gold import duty at 15% hits jewellery stocks 2026

What changed overnight

Jewellery stocks such as Titan Company, Kalyan Jewellers, Senco Gold, PC Jeweller, Thangamayil Jewellery, PN Gadgil Jewellers and Tribhovandas Bhimji Zaveri came under pressure on Wednesday after a late-night Finance Ministry notification raised import duties on precious metals. The government increased the effective import tax on gold and silver to 15% from 6%, effective May 13. The change comes amid concerns on overseas purchases of precious metals and pressure on India’s foreign exchange reserves. Market participants also linked the move to efforts to narrow the trade deficit and support the rupee. The notification extends beyond bullion to cover other precious-metal categories used in jewellery and industry.

New duty structure: 15% from May 13

Under the revised structure, imports of gold and silver now attract a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC). Together, this takes the effective import tax to 15%, up from 6% earlier. The change took effect from midnight, according to reports cited by market trackers. The revised notification also covers platinum, jewellery findings and precious metal-linked industrial imports. Certain sub-categories were assigned specific rates, including jewellery findings and spent catalysts used for recovery.

What the notification covers beyond gold and silver

Along with gold and silver, the duty change extends to platinum and related components used in manufacturing. Reports said platinum and components such as hooks, clasps, clamps, pins and screw backs used in manufacturing will attract a 10% duty. Import duties on gold and silver jewellery findings were reported at 5%, while those on platinum findings were set at 5.4%. Spent catalysts or ash containing precious metals were reported to have a concessional duty of 4.35%, subject to compliance conditions. Another report noted that the revised structure would impact a wide range of precious metal imports, including supplies from the United Arab Emirates (UAE) that previously had lower concessional rates under a quota system.

Jewellery shares slide; Kalyan among biggest losers

In early trade, jewellery counters largely opened weaker as investors reacted to the prospect of higher domestic bullion prices and potential demand impact. Kalyan Jewellers was among the sharpest decliners, falling 4.33% to Rs 346.15 in one set of reported quotes. Titan slipped 0.43% to Rs 4,037.80, while Senco Gold traded 0.19% lower at Rs 312.15. PC Jeweller was down 0.94% at Rs 8.40. PN Gadgil Jewellers bucked the trend marginally in that snapshot, up 0.02% at Rs 627.40.

Fresh lows and a third day of pressure

Other updates through the session showed the selloff extended, with some stocks testing lower intraday levels. Kalyan Jewellers was reported down 5.62% at Rs 341.45 at one point, and also touched a day’s low near Rs 340 in another market update. Thangamayil Jewellery declined 2.43% to Rs 3,580.70, while Senco Gold fell 1.6% to Rs 307.80 and was also reported to have dipped to around Rs 302 at its day’s low. Titan fell to a low of Rs 4,001, before recovering to trade flat later around Rs 4,052.90 in one update. Reports also described the sector’s decline as extending into a third consecutive session.

Domestic bullion prices jump after the duty hike

While jewellery shares weakened, domestic bullion prices were reported to have surged sharply on Wednesday after the import duty increase, triggering a broader rally in commodities. The immediate mechanism is straightforward: a higher import tax raises landed costs for bullion, which can feed into domestic prices. Market commentary in the reports flagged that the higher duties are seen hurting demand in the world’s second-largest consumer of precious metals. At the same time, the move was also framed as potentially supportive for the rupee, described as one of Asia’s worst-performing currencies, by curbing import intensity.

What analysts and broker notes highlighted

Kotak Institutional Equities was cited as saying jewellery stocks had been falling this week as the market was already fearing taxation measures on gold. Nomura had earlier suggested the government may disincentivise non-essential imports like gold, and may include a potential hike to customs duty. Separately, HDFC Securities’ Devarsh Vakil was quoted as saying the policy adjustment aims to protect foreign exchange reserves and narrow the trade deficit. Equinomics Research founder G Chokkalingam said the hike is a “third major shock” for jewellery buyers and sellers after the rally in global gold prices and rupee depreciation, and described the move as negative for jewellery stocks.

Imports backdrop: IGST issue and a demand warning

The duty hike comes against a backdrop of disruption in bullion imports linked to tax administration. One report said India’s gold imports in April were likely to be the lowest in 30 years due to an unexpected tax demand on banks, with customs authorities seeking a 3% Integrated Goods and Services Tax (GST) on gold imports, prompting banks to stop shipments. Banks later resumed imports after paying 3% IGST, Reuters cited bullion dealers as saying, but the same report added imports may fall again following the increase in import duties. Separately, Senco Gold’s Suvankar Sen said in an interview that if a duty hike happens, there could be a 10-12% reduction in gold volumes.

Key facts at a glance

Stock moves reported on May 13 (selected)

Market context and why investors are watching closely

The immediate market read-through is that a higher import tax can lift domestic gold and silver prices and compress near-term demand, particularly for discretionary jewellery buying. Reports explicitly highlighted the risk of buyers postponing purchases, especially in wedding and festive segments, when prices are already elevated. Another line of commentary noted that organised players could still fare better than smaller unorganised jewellers due to brand strength, inventory management and customer trust, though that remains a sector narrative rather than a quantified outcome in the reports. Broader indices were also weak: one update said the NSE Nifty50 was down 0.14% at 9:35 AM. The rupee-support argument rests on import suppression and reduced pressure on the current account, which is why macro-focused investors are also tracking follow-through.

Conclusion

India’s decision to raise the effective import tax on gold and silver to 15% from 6% has quickly rippled through both equities and commodities, with jewellery stocks weakening and domestic bullion prices rising. The revised duty framework, effective May 13, also widens the scope to platinum, jewellery findings and certain industrial categories tied to precious metals. Investors will watch how bullion prices adjust over the next few sessions and whether import volumes soften after the duty change, especially given recent disruptions linked to the 3% IGST issue on gold imports.