The Indian government has sharply increased the import duty on gold from 6% to 15%, effective May 13, as part of efforts to alleviate pressure on foreign exchange reserves amid global economic uncertainties. This hike will raise the effective import duty on gold to 15%, comprising 10% Basic Customs Duty and 5% Agriculture Infrastructure and Development Cess. As a result, retail prices for gold jewellery are expected to rise significantly, with current prices for 24K gold at approximately ₹15,475 per gram. The government estimates that a 30-40% drop in gold imports could save India between $20-25 billion annually, as gold accounts for nearly 9-10% of the country’s total import bill. However, the increase in duties raises concerns about a resurgence of smuggling activities and illegal gold trade, which had decreased following previous tariff cuts. Jewellers and bullion traders are preparing for a slowdown in business, with expectations of reduced customer footfall and higher operational costs due to increased duties on jewellery findings. The government’s broader strategy appears to focus on reducing dependence on imported gold and promoting domestic recovery during a challenging global economic climate.