The Indian government has raised import tariffs on gold and silver to 15%, up from 6%, in an effort to reduce overseas purchases and support the rupee, which is struggling against other currencies. This decision comes as India, the second-largest consumer of precious metals, seeks to address its current account deficit. Industry experts caution that while this may narrow the trade deficit, it could dampen demand for gold and silver, which have seen rising prices and increased investment interest. Notably, inflows into India's gold exchange-traded funds (ETFs) surged 186% year-on-year in the March quarter, reaching a record 20 metric tons. However, the higher duties may also lead to a revival of smuggling, as the profit margins for illegal imports could become attractive. Prime Minister Narendra Modi has encouraged citizens to refrain from purchasing gold for a year to help protect foreign exchange reserves. As a result of previous tax measures, gold imports had already dropped to a near 30-year low, but the recent increase in duties is expected to further impact these figures.