The government has raised import tariff value on gold marginally to $347 per 10 grams but reduced it on silver to $448 per kg, taking into account global price trend. During the first fortnight of this month, the tariff value on imported gold was fixed at $344 per 10 grams and on silver it was $461 per kg. The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. It is normally revised on a fortnightly basis. The country's gold imports fell in value terms by 36.48% to $3.53 billion in November this year, as against $5.57 billion in the year-ago period.
Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit, which occurs when value of import of goods and services is more than the exports.