New Delhi: The central government has increased the import duty on gold from 7.5 percent to 12.5 percent. The explanation is that the government’s action is aimed at reducing consumption.
The rise in imports has put pressure on the rupee and the tariff hike has been announced in haste. The trade deficit hit a record high of $24.3 billion in May.
The increase in the import of gold is nine times as compared to the same period of the previous year. In the month of May alone, gold worth 61,000 crores ($7.7 billion) was imported. India has the second place in gold consumption in the world.
Most of the gold required in the country depends on imports. In the last year’s budget, the import duty of gold was reduced to 7.5 percent. Despite the fall in the global market, the gold price in the country recorded a surge after the duty was increased.
Gold prices in the state increased by Rs 960 to Rs 38,280. The previous day’s price was Rs 37,320. In the country’s commodity market MCX, the price of 10 grams of 24 carat gold rose by three percent to Rs 51,900.
