India Cuts Import Duties on Gold and Silver to Boost Demand

India has reduced import duties on gold and silver to 6%, a decision announced by Finance Minister Nirmala Sitharaman. This move is expected to increase retail demand and reduce smuggling. However, higher demand for gold could impact the global market and India's trade deficit, affecting the rupee value.

India announced a reduction in import duties on gold and silver to 6%, as revealed by Finance Minister Nirmala Sitharaman on Tuesday. Industry experts believe this measure will boost retail demand and help curb smuggling in the world's second-largest bullion consumer.

An increased demand for gold in India is anticipated to support global prices, which have already reached record highs this year. However, this surge in demand may escalate India's trade deficit and further strain the weakening rupee.