India raises gold, silver import duty to 15% from 6%
What's the story
The Indian government has raised the import duty on gold and silver from 6% to 15%. The move is aimed at curbing imports of these precious metals and reducing pressure on the country's foreign exchange reserves. The decision comes days after Prime Minister Narendra Modi urged Indians to refrain from buying gold for a year in national interest amid economic pressures stemming from the ongoing US-Iran conflict in West Asia.
Economic implications
Move to strengthen rupee, reduce trade deficit
The increased tariffs are likely to affect demand in India, the world's second-largest consumer of precious metals. Economists believe this move could help reduce India's trade deficit and strengthen the rupee, which has been one of Asia's worst-performing currencies in recent months. The decision comes amid concerns over the rapid increase in gold imports and its effect on India's foreign exchange reserves and trade balance.
Import statistics
GTRI urges government to review tariff concessions under India-UAE FTA
According to GTRI data, India's gold bar imports surged from $36.5 billion in 2022 to $58.9 billion in 2025, with UAE accounting for an increasing share. The think tank also urged the government to review tariff concessions under the India-UAE free trade agreement.