Gold Imports Slump Sharply After Centre Raises Duty

Gold imports into the country have reportedly fallen by nearly 70% following the increase in import duty, according to a government official. The Centre raised the import duty on gold and silver from 6% to 15% as part of measures aimed at protecting foreign exchange reserves. The higher duty came into effect on May 13. Monthly gold imports, which previously stood at around 75-100 tonnes, have reportedly declined to 25-30 tonnes over the past month.

The sharp fall comes as the higher import duty has increased the cost of bringing gold into the country. Officials said the duty hike was aimed at helping protect foreign exchange reserves. The significant decline in imports could also have implications for the domestic gold market, depending on how demand and supply conditions evolve.