Chennai, May 13:
The Centre has increased import duty on gold and silver from 6% to 15% with immediate effect, a move expected to push domestic prices of the precious metals even higher.
The decision comes amid concerns over rising foreign exchange outflows and pressure on the rupee, driven by a surge in global crude oil prices due to the ongoing Middle East conflict. Higher oil prices have significantly increased Indiaās import bill, adding strain on the economy.
India, one of the worldās largest consumers of gold and the top consumer of silver, is likely to see a strong impact from the duty hike, with prices expected to climb further in the coming days.
Prime Minister Narendra Modi had recently urged citizens to cut down on fuel consumption and avoid unnecessary spending, including gold purchases and foreign travel, in light of the economic pressures.
In Chennai, gold prices had already surged, with one sovereign rising to ā¹1,14,640, while the per gram rate touched ā¹14,330. Silver prices also increased to ā¹300 per gram.
The duty hike has raised concerns among consumers and traders, as the cost of gold and silver is expected to rise further, impacting demand in the near term.