The government has hiked import tariffs on gold and silver to 15% from 6% in an effort to cut down on overseas purchases of the metals and ease pressure on the country’s foreign exchange reserves, news agency Reuters reported.

The higher duties could lower the demand in India, which is the world’s second-largest consumer of precious metals, and help curb India’s trade ⁠deficit while ​supporting the rupee,.

However, inudtsry officials expressed concerns that higher import duties could revive smuggling, which had eased after mid-2024 tariff cuts.