NEW DELHI: The Centre has increased the import duty on gold and silver from 6 per cent to 15 per cent with immediate effect, a move that is expected to push up prices of the precious metals further in the domestic market.
The decision comes amid rising concerns over foreign exchange outflow and pressure on the rupee, triggered by a surge in global crude oil prices due to the ongoing Middle East conflict.
As a result of the duty hike, gold and silver prices are likely to rise further. India is among the largest consumers of gold globally and remains the top consumer of silver, making the impact of the move significant.
Crude oil prices have risen sharply in the international market, increasing India’s import bill and putting pressure on foreign exchange reserves. The rupee has also been facing depreciation.
Amid these developments, Prime Minister Narendra Modi, speaking at an event in Telangana on May 10, urged citizens to reduce fuel consumption and avoid unnecessary expenditure. He suggested measures such as work from home, online meetings, and limiting luxury spending, including gold purchases and foreign travel.
Meanwhile, in Chennai, gold prices had already surged, with one sovereign rising by Rs 1,840 to Rs 1,14,640, while the per gram rate increased by Rs 230 to Rs 14,330.
Silver prices also saw an increase of Rs 15 per gram, taking the rate to Rs 300 per gram (Rs 3,00,000 per kg).
The Centre’s latest move has triggered concern among consumers, as prices of gold and silver are expected to climb further in the coming days.