{"id":926,"date":"2026-05-13T06:50:33","date_gmt":"2026-05-13T06:50:33","guid":{"rendered":"https:\/\/dailypakistannews.com\/?p=926"},"modified":"2026-05-13T06:50:33","modified_gmt":"2026-05-13T06:50:33","slug":"india-raises-gold-and-silver-tariffs-to-15-to-curb-imports-support-indian-rupee","status":"publish","type":"post","link":"https:\/\/dailypakistannews.com\/?p=926","title":{"rendered":"India raises gold and silver tariffs to 15% to curb imports, support Indian rupee"},"content":{"rendered":"

NEW DELHI: India has raised import tariffs on gold and silver to 15% from 6%, government orders \u200bsaid on Wednesday, as part of efforts to curb overseas purchases of the \u200cmetals and ease pressure on the country\u2019s foreign exchange reserves.<\/strong><\/p>\n

The higher duties could dampen demand in the world\u2019s second-largest consumer of precious metals, although they may help narrow India\u2019s trade deficit and support the rupee, one \u200bof Asia\u2019s worst-performing currencies.<\/p>\n

However, industry officials warned higher import taxes could revive smuggling, which \u200bhad eased after India cut tariffs in mid-2024.<\/p>\n

The government has imposed a \u206010% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC) on gold and \u200bsilver imports, taking the effective import tax to 15% from 6%.<\/p>\n

Indian banks resume bullion imports after month-long halt over 3% levy, sources say<\/strong><\/a><\/p>\n

\u201cAs expected, the government has raised \u200bduties to curb the current account deficit. However, this could affect demand, as gold and silver prices were already elevated,\u201d said Surendra Mehta, national secretary at the India Bullion and Jewellers Association.<\/p>\n

Prime Minister Narendra Modi on \u200bSunday urged people to avoid gold purchases for a year to help protect foreign exchange \u200breserves. India meets almost all of its gold consumption through imports.<\/p>\n

Gold demand, particularly for investment purposes, has risen \u200cin \u2060India amid a recent rally in prices and negative returns from equities over the past year.<\/p>\n

Inflows into India\u2019s gold exchange-traded funds (ETFs) surged 186% year-on-year in the March quarter to a record 20 metric tons, the World Gold Council said last month.<\/p>\n

India has been trying to curb gold imports \u200bin recent weeks and \u200bbegan levying a \u20603% integrated goods and services tax (IGST) on gold and silver imports, prompting banks to halt imports for more than a month.<\/p>\n

India gems and jewellery exports fall to five-year low on US tariffs<\/strong><\/a><\/p>\n

As a result, April imports fell \u200bto a near 30-year low. Banks have since resumed imports after paying \u200bthe 3% IGST, \u2060but imports are now likely to fall again following the increase in import duties, bullion dealers said.<\/p>\n

\u201cGrey markets are likely to become active, as the incentives to bring in gold illegally are \u2060high. At \u200bcurrent price levels, smugglers could make significant profits,\u201d said \u200ba Mumbai-based bullion dealer at a private bank, who declined to be named as he was not authorised to speak \u200bto media.<\/p>\n","protected":false},"excerpt":{"rendered":"

NEW DELHI: India has raised import tariffs on gold and silver to 15% from 6%, government orders \u200bsaid on Wednesday, as part of efforts to curb overseas purchases of the \u200cmetals and ease pressure on the country\u2019s foreign exchange reserves. The higher duties could dampen demand in the world\u2019s second-largest consumer of precious metals, although […]<\/p>\n","protected":false},"author":0,"featured_media":927,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan-news"],"_links":{"self":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts\/926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=926"}],"version-history":[{"count":0,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts\/926\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/media\/927"}],"wp:attachment":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}