The central government has raised customs duties on imports of precious metals, including gold and silver from 6% to 15%, just days after Prime Minister Narendra Modi urged people to adopt austerity measures such as deferring decisions to buy gold by one year to save previous foreign exchange amid global economic upheavals due to the war in West Asia.
“The policy measure aimed at safeguarding macroeconomic stability, conserving foreign exchange, and moderating non-essential imports during a period of heightened global uncertainty arising from the ongoing West Asia crisis,” a government official said requesting anonymity.
Import duty on gold and silver has been increased from 6% to 15%, while the import duty on platinum has been increased from 6.4% to 15.4%. Consequential changes have also been made to other items such as gold and silver doré, coins, and findings, he said.
“The current geopolitical situation has created significant volatility in global crude oil markets and international shipping routes. As a large importer of crude oil, India remains vulnerable to elevated energy prices and supply-side disruptions, which can increase the import bill, exert pressure on inflation, and the current account deficit (CAD). In such circumstances, prudent management of the country’s external sector becomes essential,” he said.
