Now Reading: Govt cuts gold duty drawback rate by 3.1%, silver by nearly 9%
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Govt cuts gold duty drawback rate by 3.1%, silver by nearly 9%
The central government on Friday, 16 October 2026, reduced duty drawback rates for gold and silver jewellery exports. The Ministry of Finance notification cuts the refund on gold jewellery by 3.1% to Rs 1,794.11 per gram from Rs 1,851.99, and the refund on silver products by about 9% to Rs 26,859.02 per kilogram from Rs 29,501.09.
Duty drawback refunds customs and other duties paid on imported inputs used in export production. The reduction follows a significant hike in July 2026 that had raised the gold refund from Rs 773.17 to Rs 1,851.99 per gram and the silver refund from Rs 14,990.66 to Rs 29,501.09 per kilogram. Industry experts quoted in the source said strong global demand could limit the impact on exports.
Indian Opinion Analysis
The duty drawback reduction reverses a July 2026 increase by roughly the same margin, leaving net rates for gold jewellery almost unchanged from their pre-July level. Silver exporters face a sharper net cut, with the per-kilogram refund still nearly double the pre-July rate. The Finance Ministry has signalled it views the earlier hike as temporary relief, not a permanent benchmark. Industry experts quoted in the source assume global demand will cushion any drag on exports, but the notification itself does not cite any new trade data or cost study that prompted the rollback. Exporters now wait to see whether overseas buyers absorb the higher net cost or shift orders to competing hubs.
Source: morungexpress.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
