India has implemented a steep increase in import duties on gold and silver, raising the tariff from 6% to 15%. The move, confirmed by multiple market reports, marks a significant escalation in the government's effort to curb bullion purchases and reduce the trade deficit.
Prime Minister Narendra Modi had previously urged citizens to scale back on gold buying, framing the metal as a non-productive asset in the context of national economic priorities.
The tariff hike directly impacts the cost structure for Indian jewelers and refiners, who rely heavily on imported bullion.
With India accounting for a substantial share of global gold demand, particularly during peak wedding and festival seasons, the higher duties are expected to dampen physical consumption.
Market participants are now assessing the elasticity of demand in the region, with many anticipating a shift toward domestic recycling or a temporary pullback in purchases.
This development adds to the complex backdrop for gold prices, which have seen heightened volatility amid shifting central bank policies and geopolitical tensions.