The government reduced the import tariff value of gold to $382 per 10 grams and of silver to $516 per kg on Wednesday, considering weak global price trend in the wake of Greek crisis. For last fortnight, the tariff value of gold was fixed at $385 per 10 grams and silver at $519 per kg. The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices.
Gold imports in India, the world’s biggest consumer, grew 10.47% to $2.42 billion in May on declining prices and easing of restrictions by the Reserve Bank of India, against $2.19 billion in the same month of 2014. Since higher gold import bill adversely affects the country’s current account deficit, the government has been repeatedly asking people to desist from buying gold and instead invest in other saving instruments.