On May 13, 2023, gold and silver exchange-traded funds (ETFs) experienced a significant surge of 7% following the Indian government's decision to increase import duties on these precious metals from 6% to 15%. This hike includes a 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess (AIDC), aimed at reducing imports, narrowing the trade deficit, and supporting the Indian rupee, which recently fell to an all-time low of ₹95.75 per dollar. Major gold ETFs, including Union Gold ETF and Axis Gold ETF, saw increases between 4% and 6.5%, while silver ETFs like DSP Silver and SBI Silver rose by 5% to 6%. Gold futures for June delivery climbed to ₹1,62,621 per 10 grams, up 6% from the previous close. Analysts, including Hareesh V Nair from Geojit Investments, anticipate a mild short-term decline in demand due to the duty increase but expect a recovery over time, similar to past trends. Notably, India is the second-largest consumer of gold and the largest consumer of silver globally, relying heavily on imports to meet domestic demand.