Why Has the Government Cut Gold and Silver Import Prices This Week?
About the Revision
The Central Board of Indirect Taxes and Customs (CBIC) has revised the base import prices — also called tariff values — for gold and silver to reflect recent international price movements and foreign exchange trends. This periodic adjustment helps keep India’s customs duty structure aligned with global spot prices and currency fluctuations.
Under the new notification, the base import price of gold has been reduced by $42 per 10 grams, while silver has been reduced by $107 per kilogram. The revision aims to ensure that importers and refiners pay duties based on realistic international market values rather than older benchmarks that may distort landed costs.
Revised Tariff Values (Effective November 2025)
| Commodity | Old Base Price | Revised Base Price | Change |
|---|---|---|---|
| Gold | $626 per 10g | $584 per 10g | - $42 |
| Silver | $1,178 per kg | $1,071 per kg | - $107 |
These values are used by Indian Customs to compute the duty payable on imported bullion and are reviewed every fortnight. Lower base values translate to slightly lower effective customs duty payments for importers and jewellery manufacturers.
Traders can align short-term commodity positioning with F&O Strategy insights for volatility mapping in bullion-linked counters.
Market Impact
The revision reflects the government’s responsiveness to falling global bullion prices amid easing inflation expectations and a stronger U.S. dollar. In India, where bullion imports form a major portion of the trade deficit, periodic tariff value adjustments help smoothen the cost of imports and reduce speculative arbitrage.
However, the impact on retail jewellery prices is usually minimal, as retail pricing depends on additional factors such as local demand, rupee-dollar rate, and hallmarking charges.
SWOT Analysis
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Although the base price cut benefits traders, the pass-through to end customers remains gradual, often taking a few trading cycles to reflect in spot retail rates.
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Short-term traders in the bullion segment may track Swing Trade Tip setups for directional bias as festive demand moderates in November.
Investor Takeaway
The tariff value reduction signals that the government continues to fine-tune policy with real-time global trends, promoting cost transparency in the bullion import chain. For investors, this could mean short-term softness in gold prices but long-term price stability in the Indian bullion market.
Explore more such updates at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Bullion Price Policy
- How Are Tariff Values for Gold and Silver Calculated?
- Will This Cut Impact Jewellery Prices Immediately?
- How Do Global Prices Influence India’s Import Duties?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
