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Prices are rising yet people continue to buy. The discussion is about gold and silver. Now the government also wants to curb these rising prices. However there are international reasons behind the price rise. However the rapid pace at which people in India are investing in gold and silver is a matter of some concern for the government. In this situation the budget is coming which will be presented in a few days in which the government may take major decisions regarding gold and silver. It is reported that the government is considering increasing import duties on gold and silver. The main reason for this is that despite the rapid rise in prices gold and silver imports have reached record levels which is increasing pressure on the rupee and increasing the trade deficit. According to recent reports despite high prices demand for gold and silver in India is not decreasing. Continuous rise in demand for gold and silver Indias gold imports reached approximately $59 billion in 2025 while silver imports increased 44 percent year-on-year to approximately $9 billion. This large import volume has put pressure on foreign exchange reserves and led to a weakening rupee. Both precious metals account for approximately 9% of Indias total import bill of $750 billion. Currently gold and silver attract a 6% import duty. Previously these rates were as high as 15%. Experts say that global uncertainty geopolitical tensions and stock market volatility have driven investors toward safe-haven assets like gold and silver. Record investment in gold and silver ETFs has also fueled demand. Rising gold and silver prices have put the government in a spot of stress. The government now faces the challenge of controlling imports so increasing import duties is seen as an option to curb non-essential imports and reduce the current account deficit. However increasing duties also increases the risk of smuggling. ALSO READ: Today Gold Silver Rate January 29: Check 18 22 24 carat Gold prices in Chennai Mumbai Delhi Kolkata According to various reports serious deliberations are underway on this issue ahead of Budget 2026. If the government decides to increase the duty it could impact domestic gold and silver prices the jewelry industry and investors. Currently the market and industry are closely monitoring the governments next move. On January 28 2026 the price of gold has increased to Rs 164000 per 10 grams while the price of silver has increased to a record Rs 384000 per kg. However history shows that increasing import duties has not been particularly effective in curbing gold demand. In August 2013 when the import duty on gold was raised from 2% to 10% demand remained strong.