India, the world's second-largest gold consumer, has increased import duties on gold and silver to 15% from 6%, due to a declining rupee. The move comes after Prime Minister Narendra Modi urged citizens to reduce bullion purchases for a year due to overseas purchases. The government has imposed a 10% basic customs duty and a 5% tax on gold, silver imports. This increase in demand for gold inflates India's import bill due to rising global energy prices and Middle Eastern disruptions. The country's average monthly gold import rose to 83 tonnes in the first two months of 2026 from 53 tonnes in 2025. However, higher energy costs are expected to significantly widen the country's trade deficit and current account deficit.