New Delhi: The government on Monday hiked import duty on gold and platinum to six per cent from four per cent with immediate effect. The decision came from the government as the rising import of gold was hurting country's balance of trade and foreign exchange.
Following the move, the gold price in the national capital went up by Rs 315 per 10 gram.
India had in 2012 imported gold worth $56.2 billion, following which Union Finance Minister P Chidambaram had warned that the country's appetite for gold was affecting the economy.
According to a Finance Ministry official, the step was taken by the government in a bid to cut down ballooning current account deficit. The news sent gold futures higher by a per cent.
The duties would be reviewed if there's a moderation in gold imports, Economic Affairs Secretary Arvind Mayaram told reporters.
(With Additional Inputs from Reuters)