India raises import duty on gold jewellery to 15 per cent
NEW DELHI, Sept 17 (REUTERS) - India increased the import duty on gold jewellery to 15 per cent from 10 per cent on Tuesday, in a move aimed more at protecting the domestic jewellery industry rather than stemming overseas purchases to narrow its current account deficit.
The world's top gold consumer left the import duty on bullion unchanged at 10 per cent. By keeping the import tax on jewellery higher than that of bullion, price-conscious consumers would be forced to buy those manufactured within India.
While the tax hike is part of India's efforts to curb gold imports, it is unlikely to have a significant impact since jewellery accounts for only a small portion of the country's gold imports.
India's imports of gold jewellery stood at US$137.57 million (S$173.97 million) between April and July, a fraction of total bullion imports, which in July alone were valued at $2.9 billion.