Gold Imports Decline in the Country Here’s the Reason

Gold imports into the country have fallen sharply by nearly 70 percent, limiting volumes to around 25–30 tonnes, according to a government official. Earlier, monthly imports were in the range of 75–100 tonnes, but have now dropped significantly in recent weeks.

The decline comes after the central government increased import duty on gold and silver from 6 percent to 15 percent as part of measures to protect foreign exchange reserves. The revised duty came into effect from May 13.

Officials said the higher tax structure has directly impacted demand and imports. The sharp reduction in inflows is seen as a result of the increased cost of importing precious metals into the country.