India raises import duties on gold, other precious metals
MUMBAI, July 5 (Reuters) - India has raised the import
duties on gold and other precious metals to 12.5% from 10%,
Finance Minister Nirmala Sitharaman said in her first federal
budget speech on Friday, which may boost smuggling in the
world's second-biggest bullion consumer.
Shares of jewellery makers such as Titan and PC
Jeweller fell as much as 5% after the announcement.
Jewellery trade associations have asked India's government
to reduce gold import duties, which has caused a surge in
smuggling. India, which vies with China as the world's top gold
consumer, raised import taxes on the metal to 10% in a series of
hikes to August 2013 as policymakers attempted to narrow a
gaping current account deficit and arrest a decline in the
(Reporting by Rajendra Jadhav; editing by Christian
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