India slashes import tax on gold, silver to 6% to tackle smuggling
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MUMBAI, July 23 (Reuters) -India slashed import duties on gold and silver to 6% from 15%, a move that industry officials say could boost retail demand and help curtail smuggling in the world's second-biggest consumer of bullion.
Higher demand for gold from India could boost global prices, which hit a record high this year, although that could widen India's trade deficit and put pressure on the ailing rupee.
"To enhance domestic value addition in gold and precious metal jewellery, I propose to reduce customs duties of gold and silver to 6%," Finance Minister Nirmala Sitharaman said in a budget speech on Tuesday.
She also announced an import duty exemption for 25 critical minerals, including lithium. India has been exploring ways to secure supplies of lithium, a critical raw material used to make electric vehicle batteries.
Reporting by Rajendra Jadhav; Additional reporting by Neha Arora; Editing by Himani Sarkar and Clarence Fernandez
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