New Delhi, May 13: In a major move aimed at reducing non-essential imports and protecting the country’s foreign exchange reserves, the Indian government on Wednesday increased the import duty on gold and silver to 15%, up sharply from the earlier 6%.
The decision comes amid rising concerns over India’s widening import bill and growing pressure on the rupee. Gold and silver are among the country’s largest non-oil imports, and higher duties are expected to discourage excessive purchases from overseas markets.
According to official orders, the revised tariff structure takes immediate effect. The government believes that raising duties on precious metals will help contain demand, reduce dollar outflows, and strengthen India’s external financial position.
India is one of the world’s largest consumers of gold, importing hundreds of tonnes every year to meet demand for jewellery, investment, and cultural purposes. However, large-scale imports often put significant strain on the nation’s foreign exchange reserves, especially during periods of global economic uncertainty.
Market analysts say the move could push domestic gold and silver prices higher in the short term and may impact jewellery demand ahead of the festive and wedding seasons. At the same time, the government hopes the measure will encourage recycling of existing gold stocks and support broader efforts to maintain macroeconomic stability.
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