The Indian government has increased import tariffs on gold and silver from 6% to 15% as part of efforts to curb imports and support the struggling rupee. This decision, which includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC), aims to ease pressure on the country's foreign exchange reserves. However, industry experts caution that the higher tariffs could dampen demand for these precious metals, which have seen a surge in investment interest due to rising prices and poor equity returns. Prime Minister Narendra Modi recently urged citizens to refrain from purchasing gold for a year to further protect foreign reserves. Despite the government's intentions, there are concerns that these increased duties may lead to a revival of smuggling activities, as the incentives for illegal imports rise significantly. The recent hike follows a period of reduced imports, which had reached a near 30-year low due to previous tax measures.