In a significant policy shift, the Indian government has raised import tariffs on gold and silver from 6% to 15% as part of efforts to curb imports and protect the country's foreign exchange reserves. This decision comes shortly after Prime Minister Narendra Modi urged citizens to refrain from purchasing gold for a year, citing economic pressures linked to the ongoing conflict in the Middle East. The increase in tariffs is expected to reduce demand in India, the world's second-largest consumer of gold, and could help shrink the trade deficit while providing support to the rupee, which has struggled against other currencies in recent months. According to the Global Trade Research Initiative (GTRI), India's gold bar imports surged from $36.5 billion in 2022 to an anticipated $58.9 billion by 2025, with a significant portion coming from the UAE. The GTRI has also recommended that the government reassess its Free Trade Agreement (FTA) policies, particularly regarding tariff concessions on precious metals from Dubai, which have contributed to the rising import figures.