On Wednesday, the Indian government raised customs duty on gold and silver to 15% from 6% as part of efforts to manage the country's current account deficit and conserve foreign exchange reserves amid ongoing geopolitical tensions in West Asia. This decision came shortly after Prime Minister Narendra Modi urged citizens to practice economic prudence, emphasizing the need to save foreign exchange for essential imports like energy and fertilizers. Gold imports in the fiscal year 2025-26 rose by 24.08% to $71.98 billion, while silver imports surged by 149.48% to $12.05 billion. Despite having foreign exchange reserves of over $690 billion, the government is adopting a cautious approach due to uncertainties in global markets, particularly in crude oil, where prices have jumped 48% since February. The increase in customs duties is intended to moderate non-essential imports and support macroeconomic stability. However, experts caution that elevated duties could lead to increased smuggling of precious metals. The government aims to prioritize essential imports that bolster economic activity and national security during these volatile times.