Modi says Iran war poses severe risks to India, urges cuts in fuel use and gold purchases
- On Wednesday, India increased import duties on gold and silver to 15% from 6%, aiming to reduce overseas purchases and ease pressure on the country's foreign exchange reserves.
- Rising economic pressure prompted the move, as India's merchandise trade deficit exceeded $330 billion for the fiscal year ending March 2026, alongside record gold demand reaching $25 billion in early 2026.
- Prime Minister Narendra Modi recently urged citizens to curb bullion purchases and fuel consumption, while Chief Economic Advisor Anantha Nageswaran called stopping the rupee's decline a "central macroeconomic imperative."
- Market analysts expressed mixed views, with Trinh Nguyen of Natixis stating India is "backtracking on liberalization," while Vishrut Rana of Global Ratings noted lower gold imports could reduce current account outflows.
- Despite the tariff hike, industry officials warn that higher duties could revive smuggling, while persistent global energy costs continue to exert pressure on the rupee.
149 Articles
149 Articles
Import duty on gold, silver raised to 15 pc
New Delhi: The government on Wednesday, May 13, hiked import duties on gold and silver to 15 per cent from 6 per cent as part of measures to curb inbound shipments of precious metals amid a rising import bill due to the West Asia crisis. Days after Prime Minister Narendra Modi’s clarion call for curbs on gold purchases, along with other austerity measures to save on foreign exchange, the Finance Ministry, in a notification, hiked the social welf…
Gold, silver import duty raised to 15% from 6% as govt moves to curb imports, support rupee
India has significantly increased import tariffs on gold and silver to 15% from 6% to curb imports and protect foreign exchange reserves. This move follows Prime Minister Modi's appeal for citizens to avoid gold purchases for a year, aiming to narrow the trade deficit and support the rupee amid ...
Modi urges Indians to cut fuel use, work from home amid energy crunch
Indian Prime Minister Narendra Modi on Sunday (May 10) called on citizens to use less fuel, work from home, and reduce imports, as surging global energy prices strained the country's foreign currency reserves.
The impact of US-Iran tensions is also being felt on India's economy. Amid declining foreign exchange reserves, PM Modi has urged restraint in gold purchases, petrol, diesel, and cooking oil consumption to reduce import costs and pressure on the dollar.
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