22.4 C
New York
Friday, October 7, 2022

Buy now


India Raises Basic Import Duty On Gold Amid Widening Trade Deficit, Falling Rupee

India has raised basic import duty on gold to 12.5% from 7.5%, according to a gazette notification on Friday. The move comes amid surging trade deficit and falling currency.

India’s trade deficit widened to a record high of $24.29 billion in May. Gold imports stood at $6 billion in May. The higher trade deficit is expected to lead to India’s current account deficit widening to 2.5-3% of GDP in the current financial year. The current account deficit was at 1.2% of GDP in FY22.

The widening deficit and slower capital flows have put pressure on the Indian rupee, which fell to a record low below 79 against the U.S. dollar on Friday.

Source link

Related Articles

Stay Connected

- Advertisement -spot_img

Latest Articles