India has raised import tariffs on gold and silver to 15% from 6% as part of efforts to curb overseas purchases and ease pressure on the country's foreign exchange reserves.
The higher duties could dampen demand in the world's second-largest consumer of precious metals, although they may help narrow India's trade deficit and support the rupee.
Industry officials warned higher import taxes could revive smuggling, which had eased after India cut tariffs in mid-2024.
Prime Minister Narendra Modi on Sunday urged people to avoid gold purchases for a year to help protect foreign exchange reserves.
Gold demand, particularly for investment purposes, has risen in India amid a recent rally in prices and negative returns from equities over the past year.
India has been trying to curb gold imports in recent weeks and began levying a 3% integrated goods and services tax (IGST) on gold and silver imports, prompting banks to halt imports for more than a month.
