India Raises Gold Import Duty to 15% as Forex Reserve Pressures Mount
Updated
Updated · World Gold Council · May 18
India Raises Gold Import Duty to 15% as Forex Reserve Pressures Mount
5 articles · Updated · World Gold Council · May 18
India last week lifted its gold import duty to 15% from 6%, fully reversing the July 2024 cut in a move aimed at protecting foreign exchange reserves.
INR pressure and broader geopolitical uncertainty drove the reversal, according to the report, as policymakers sought to curb import demand and conserve hard currency.
Local gold prices jumped immediately after the duty hike and were already up more than 60% from a year earlier, worsening affordability for buyers.
That price shock could further weaken consumer demand in one of the world's biggest gold markets, even as a firmer US dollar and higher oil prices weighed on gold globally.
With $700B in reserves, was India's drastic gold duty hike a necessary move or an overreaction?
As gold smuggling becomes more profitable, can India's government prevent a booming black market?