India hikes gold and silver import duties to 15 percent
India raised precious metal tariffs to 15 percent to protect reserves. Cultural traditions and inflation hedging are expected to keep domestic demand steady.
India raised import tariffs on gold and silver to 15% from 6% on May 13. The move aims to curb $84 billion in annual precious metal imports amid currency pressure from the Iran war. Investors view the hike as a reinforcing signal for gold's safe-haven appeal despite potential short-term jewellery demand cooling.
### Why Tariffs Struggle to Curb Consumption New Delhi is targeting imports to protect foreign exchange reserves after spending a record $84 billion in the fiscal year ending March. While volumes remain steady, soaring prices widened external outflows and weighed on the rupee. India meets nearly all domestic demand through imports.
