Is India Playing it Safe in the Global Energy Markets?
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On May 12 India’s Finance Ministry raised import duties on gold, silver and platinum to 10% (about 15% including the Agriculture Infrastructure and Development Cess) effective May 13, while Prime Minister Modi urged reduced fuel use as India imports over 85% of its crude oil to cut the trade deficit and protect foreign exchange reserves. These are macroprudential steps to curb precious metal and energy imports that may reduce gold demand and could modestly shift some investor interest toward crypto, DeFi, DEXs or CEXs as alternative stores of value, but they are not direct measures supporting token launches, fundraising or crypto adoption initiatives.
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- India’s Ministry of Finance raised import taxes on precious metals to roughly 15%.
- Prime Minister Narendra Modi asked Indians to cut back on fuel via various means.
- India imports over 85% of its crude oil, making it the world’s third-largest oil importer.
India appears to be playing it safe as global energy prices stay volatile, with the government rolling out steps to ease import strain and protect its currency reserves.
On May 12, India’s Ministry of Finance raised import taxes on gold, silver, platinum, and similar precious metals to 10%, up from around 5%. When combined with the Agriculture Infrastructure and Development Cess (AIDC), the total tax climbs to about 15%, effective on May 13.
This is largely seen as a way to cut precious metal imports, which is a big driver of India’s trade deficit.
At the same time, Prime Minister Narendra Modi asked Indian…
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