Indian Jewellery Stocks Drop Up to 9% as Modi's Gold Warning Sparks Tariff Fears

3 articles · Updated · Reuters · May 11

Titan, Senco Gold and Kalyan Jewellers fell 6% to 9% on Monday after Narendra Modi urged Indians to avoid buying gold for a year to protect foreign-exchange reserves.
Those comments, delivered alongside calls to conserve fuel and curb travel and imports, intensified fears that New Delhi could reverse its 2024 cut in gold import duty to 6% from 15%.
A government source said India has no plan to raise gold and silver import duties, but jewellers remain wary because the country imports nearly all its gold and has lifted tariffs before to defend the rupee.
Oil shock from the Iran war is driving the anxiety: India now faces an April-March balance-of-payments deficit of about $66 billion to $70 billion, while the rupee closed at a record low of 95.31 per dollar.

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