world-economy

India Doubles Gold and Silver Tariffs to Shore Up Currency Amid Middle East Crisis

New Delhi has more than doubled import tariffs on gold and silver to defend the rupee and protect its foreign-exchange reserves amid regional instability. The tariff increase represents the latest in a series of measures the government has implemented to limit capital outflows, including tightened rules on precious metals imports. Prime Minister Narendra Modi has also appealed directly to Indian consumers to curtail gold purchases over the coming year, citing the need to preserve foreign-exchange buffers. The strategy reflects broader concerns about economic fallout from Middle East tensions and their impact on oil prices. Economists note India's foreign-exchange reserves remain substantial, positioned above stress-test thresholds seen during previous currency pressures. The moves target non-essential imports as New Delhi attempts to weather external shocks while maintaining rupee stability.