In India, gold has long been associated with prosperity and is ingrained in the country’s culture. However, since the government more than doubled the import tax, retail sales of the precious metal have declined.
Following a spike in crude oil prices brought on by the Middle East conflict, India has been dealing with a weak rupee. Prime Minister Narendra Modi urged people to refrain from purchasing gold last month in order to preserve the nation’s foreign exchange reserves. Additionally, the import tax on it was raised by the government from six to fifteen percent.
According to New Delhi diamond store owner Bimal Mehta, it is a significant setback for the sector. “We used to have an average of 20 customers a day, but now it is only four,” he states. It’s really challenging. We’re having trouble making ends meet.”
Indians frequently purchase numerous gold accessories for festivities in addition to investing in gold. When a couple marries, it is customary for family members to present them with golden jewelry.
Gold is allegedly being smuggled into India from African and Southeast Asian countries, notably Thailand, ever since the tariff increase. To combat the illicit trade, authorities have stepped up their efforts.
