India, the world's second-largest consumer of gold and silver, has increased import tariffs to 15% from 6%, according to government orders cited by Reuters on Wednesday. This move aims to reduce imports of the precious metals, ease pressure on the country's foreign exchange reserves, help reduce the country's trade deficit, and support the declining rupee. On Tuesday, the Indian rupee fell to a record low of 95.6 against the US dollar due to rising global oil prices and economic headwinds brought on by the West Asian conflict. The previous all-time low of 95.4 on May 5.
The goal of the action is to lessen strain on India's foreign exchange reserves by reducing imports of precious metals into the nation, which is the second-largest consumer of gold and silver worldwide. Additionally, it can support the declining rupee and lessen the nation's trade deficit.
Due to rising global oil costs and economic challenges brought on by the West Asian conflict, the Indian rupee fell to a record low of 95.6 versus the US dollar on Tuesday. On May 5, the previous all-time low of 95.4 was noted.

Following a recent increase in prices and poor equity returns over the past year, demand for gold, especially as an investment, has increased in India. According to Reuters, India has been attempting to deter gold imports and has recently imposed a 3% integrated goods and services tax on gold and silver imports, which caused banks to halt purchases for more than a month. As a result, gold imports fell to their lowest level in nearly 30 years in April. Banks later resumed imports after paying the 3% integrated goods and services tax, but imports are now likely to decline after the most recent increase in import duties.
Gold imports thus dropped to their lowest point in almost 30 years in April. After paying the 3% integrated goods and services tax, banks later started importing again, but bullion dealers told Reuters that imports are now expected to decline once more due to the most recent hike in import levies.