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Gold and silver exchange-traded funds (ETFs) in India saw a sharp rise after the government increased import duties on precious metals from 6% to 15%. The announcement led to immediate gains in domestic bullion-linked instruments as prices adjusted to the higher tax burden.
Following the decision, ETFs listed on Indian exchanges opened significantly higher, with several gold ETFs jumping sharply in early trade before partially moderating. Silver ETFs also advanced strongly, tracking the rise in underlying silver prices, News.Az reports, citing The Times of India.
The rally was driven by the increase in domestic gold and silver prices after the revised customs duty structure came into effect. The higher import duty, implemented through an increase in basic customs duty along with additional levies, raised the overall cost of importing precious metals.
Trading activity across the sector showed broad-based strength, with most gold and silver ETF schemes posting notable gains during the session. At the same time, jewellery-related stocks came under pressure as higher input costs raised concerns over margins and demand.
The duty hike is expected to reshape pricing in India’s bullion market as investors and traders adjust to the increased cost of imported gold and silver.