India's Strategic Move: Import Duty Surge on Gold and Silver Amidst West Asia Turmoil

In a strategic move to stabilize its economy, India has substantially raised import duties on gold and silver. The government announced a hike from 6% to 15% on Wednesday, aiming to curb non-essential imports amidst the ongoing West Asia crisis.

This decision aligns with Prime Minister Narendra Modi's call for austerity measures to conserve foreign exchange reserves. The import duty rise comes as India, the world's second-largest gold consumer after China, grapples with a ballooning import bill.

Stakeholders in the jewellery industry express concern over potential smuggling and an unregulated market. However, sources indicate this is a controlled measure to avoid harsher import restrictions, thereby preserving market flexibility and consumer choice.

(With inputs from agencies.)