The Indian government has increased customs duties on gold and silver imports from 6% to 15%, as part of efforts to conserve foreign exchange and mitigate the impact of global economic upheavals.
The move comes days after Prime Minister Narendra Modi urged citizens to adopt austerity measures, including deferring gold purchases, to save foreign exchange.
The government official stated that the policy measure aims to safeguard macroeconomic stability, conserve foreign exchange, and moderate non-essential imports during a period of heightened global uncertainty.
The import duty on platinum has also been increased from 6.4% to 15.4%, while consequential changes have been made to other items such as gold and silver doré, coins, and findings.
The government has prioritized essential imports, such as crude oil, fertilizers, industrial raw materials, and defense requirements, to support economic activity and food security.
The increase in customs duty on precious metals is intended to moderate avoidable import demand and ease pressure on the external account.
The measure is designed to encourage moderation in non-essential imports and is part of a broader national economic discipline emphasized by the Prime Minister.
The decision reflects a preventive and forward-looking approach to external sector management, aiming to prudently manage emerging risks and reduce vulnerability to potential external shocks.
