world-economy

India Doubles Gold Tariffs as Modi Urges Public to Halt Purchases

India has sharply increased import duties on gold amid pressure on the country's foreign-exchange reserves, days after Prime Minister Narendra Modi appealed to citizens to stop buying the precious metal for at least one year.

The request marks an unusual move in a nation where gold holds deep cultural and economic significance, serving as a primary savings vehicle and playing central roles in wedding ceremonies and religious observances.

Modi's appeal comes as regional geopolitical tensions weigh on India's economy. The government is pursuing multiple conservation measures to stabilize currency reserves, including separate initiatives encouraging fuel conservation among the broader population.

The tariff increase aims to make gold purchases more expensive domestically, reinforcing the consumption slowdown the prime minister is seeking. Indian jewelry stocks have faced pressure following the announcement.