The government is aiming to increase the import duty on some of the items including stones, electronics etc as it tries to curb the inflow of items that move between the US and China. There is a threat that these items may see redirection due to the tariff imposed by both of these economies.
To support the falling rupee, non-essential imports are being curbed. It is seen that with increase in the import duty many of the items will see a price hike barring gold.
Furthermore, to reduce the import of the yellow-metal, the government is looking at a special deposit scheme. The scheme will help in recycling the precious metal. At present the import duty on gold stands at 10%.
Also, as per a Niti Aayog a gold savings account has been recommended in a report titled 'Transforming India's Gold market'. The objective of the scheme as per the report is to enable Indian citiens save in gold and make no losses while encashing the same.
Gold prices are trading sideways ahead of the Fed outcome in which its highly done that the FOMC will make a 0.25% interest rate hike and further make a call for another rate hike this year.