The move aims to bolster the rupee and foreign reserves as geopolitical tensions persist, curbing demand in the world’s second-largest gold market.
India has raised import tariffs on gold and silver from 6% to 15%, a measure intended to support the rupee and ease pressure on foreign exchange reserves. The decision comes as the Iran conflict continues to strain regional stability and economic conditions.
Gold and silver imports account for nearly 11% of India’s total imports, with the country relying almost entirely on overseas supply. Analysts expect the higher tariffs to dampen physical demand and reduce import flows in the near term, potentially cooling local buying activity.
The tariff hike reflects broader efforts to manage currency volatility and preserve reserves amid ongoing geopolitical risks.