Desk Correspondent , New Delhi - The Indian government has sharply increased customs duties on gold, silver, and platinum to 15% to safeguard macroeconomic stability and defend the falling rupee. Triggered by the ongoing West Asia crisis, the duty on gold and silver jumped from 6% to 15%, while platinum rose to 15.4%. This intervention follows the Indian rupee hitting a near-record low of 95.68 against the US dollar, prompting officials to prioritize foreign exchange reserves for essential imports like crude oil, fertilizers, and defense equipment over discretionary luxury goods.

A government official stated that the hike is a proactive response to global geopolitical volatility and shipping disruptions that threaten India’s import bill. By moderating the demand for precious metals—which are primarily consumption and investment-driven—the government aims to curb the outflow of foreign exchange and narrow the Current Account Deficit (CAD). Officials emphasized that during periods of external stress, it is essential to direct resources toward sectors with higher strategic and economic multiplier effects to ensure national security and industrial growth.

Market reaction was immediate, with the rupee recovering 16 paise to 95.52 against the dollar on Wednesday morning. Analysts suggest the move will provide much-needed resilience to the currency as gold importers scale back demand. Treasury experts noted that the calibrated hike reflects a strategy of prudent economic governance, intended to strengthen India’s financial resilience and prevent more disruptive corrective measures in the future as global energy prices and supply chains remain unpredictable.