India has raised import tariffs on gold and silver to 15% from 6%, Bloomberg reported on Wednesday, citing government orders, as authorities move 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, one of Asia’s weakest-performing currencies.
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However, industry officials warned that the tax increase could revive smuggling activity, which had eased after India cut tariffs in mid-2024.
Under the revised structure, the government has imposed a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC), taking the effective import tax to 15% from 6%.
