The Narendra Modi-led government has increased customs duties on imports of precious metals, including gold and silver, from six per cent to 15 per cent, as part of its austerity push.
The move aims to protect macroeconomic stability, save foreign exchange, and moderate non-essential imports amid the global uncertainty in the wake of the ongoing West Asia crisis.
Import duty on gold and silver has been raised from 6 per cent to 15 per cent, while the tariff on platinum has been increased from 6.4 per cent to 15.4 per cent.
The government official said the increase in customs duty on precious metals is intended to moderate avoidable import demand and ease pressure on the external account.
The current geopolitical situation has created significant volatility in global crude oil markets and international shipping routes, said the government official.
India's measure also aims to defend its currency -- the Indian rupee -- which took hard hits against the US dollar amid the West Asia war.
The rupee recovered by 16 paise from its all-time low to 95.52 against the US dollar early on Wednesday.
Gold prices surged by ₹9.723 to ₹1.63 lakh per 10 grams in the future in future trades on Wednesday, while silver climbed 7 per cent to near the ₹3 lakh per kilogram mark after the government hiked import duties on precious metals.
