[58349] India dramatically raises tariffs on gold and silver imports in an attempt to stabilize the rupee

India's economic steps to curb rupee depreciation

In a dramatic move intended to curb the depreciation of the rupee and reduce the trade deficit, the Indian government announced on Wednesday, May 13, 2026, an increase in import tariffs on gold and silver from 6% to 15%. According to the report in BITCOIN & CRYPTO POST, the move comes against a backdrop of heavy economic pressures that have caused a collapse in the value of the local currency.

Experts at FXStreet Forex News note that the step reflects the attempt by policymakers in India to use the gold market as a "pressure valve" in the country's balance of payments. According to the report, gold is no longer perceived in India solely as an asset for inflation hedging or as a financial safe haven, but as a factor that directly affects the stability of the currency.

At the same time, an analysis by Commerzbank published on FXStreet indicates that the Indian Rupee (INR) continues to suffer from heavy pressure due to high global oil prices and rigid demand for the dollar by local importers, which brought the USD/INR currency pair to a new record level. However, following the tariff announcement, a slight recovery was recorded and the rupee traded around the level of 95.60 against the dollar.

On the local front, the latest data from FXStreet indicates a decrease in gold prices in India on Wednesday as a direct result of the new policy. These steps, which are also reported by the Reuters news agency as brought on FXStreet, highlight the ongoing struggle of the Indian administration to balance domestic gold consumption with the need to maintain stable foreign currency reserves.