India raises gold and silver import duties to 15%

India hikes gold and silver import duties to 15%, raising prices and aiming to curb demand. The move targets the trade deficit and may lead to further import restrictions.

The Indian government has increased import duties on gold and silver from 6% to 15%. This new rate combines a 10% basic customs duty with a 5% Agriculture Infrastructure and Development Cess (AIDC). The move is designed to discourage the purchase of precious metals, ease pressure on foreign exchange reserves, and improve the balance of payments amid a high trade deficit and a weak rupee. Following the announcement, local gold and silver prices surged by about 6%. As a result, overall demand for these metals is expected to decline by up to 10%, with the jewelry sector seeing a 5–7% drop. Analysts suggest that the government may introduce additional measures to restrict non-essential imports and further strengthen the local economy. The decision has also provided a slight boost to the rupee against the dollar.