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Why India hiked import duty on gold, silver amid rupee fall and rising oil prices

The Indian Express·Aanchal Magazine·20 days ago
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Gold constitutes the second-biggest item in India's import bill after crude oil imports. (Representational Image/Magnific) Coming close on the heels of Prime Minister Narendra Modi’s call for the adoption of austerity measures , the government has hiked customs duty on gold and silver imports to 10% from 5%, and Agriculture Infrastructure and Development Cess (AIDC) to 5% from 1%, taking the total effective import duty to 15% with effect from May 13. The effective import duty on platinum has also been increased to 15.4% from 6.4%. On the trigger for the move, officials said it is a “carefully calibrated and proportionate intervention” to “encourage moderation in non-essential imports at a time when external vulnerabilities remain elevated”.…

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