The Indian government hiked import tariffs on gold and silver to curb bullion inflows and ease forex reserve pressure.
The Indian Rupee (INR) strengthened slightly against the US Dollar (USD) on Wednesday, with the USD/INR pair dipping to near 83.60. The move follows India’s decision to raise import duties on gold and silver to 15% from 6%, aiming to reduce bullion imports and protect foreign exchange reserves.
India’s Department of Revenue announced the tariff hike overnight, also imposing a 5% customs duty on gold and silver findings used in jewelry manufacturing. Market participants had expected the increase after Prime Minister Narendra Modi urged citizens to delay non-essential gold purchases amid geopolitical tensions.
Oil prices remained elevated, with WTI crude trading near $97.20, up over 6% this week, as US-Iran negotiations failed to progress. The rupee’s modest gain reflects broader market reactions to trade policy shifts and commodity price movements.