PM Modi's gold cut call & 15% tax change imports

Prime Minister Narendra Modi is urging Indians to reduce their gold purchases, coinciding with efforts to reduce the country's gold import bill. India imports most of the gold it uses, making it a significant consumer of the yellow metal. The government has raised the customs duty on gold and silver to 15%, making imported gold more expensive.

Data shows that gold imports indeed fell in the months following Modi's May appeal. Imports declined nearly 4% in May, 20% in July, and are expected to decrease by 30% in August. While the decline may not be solely attributable to Modi's appeal, the government hopes the appeal will lead to a 15% reduction in gold imports in September, easing pressure on the trade balance and current account.