Prime Minister Narendra Modi’s dual-pronged attack on India’s gold obsession has sent shockwaves through the jewellery industry and the bullion market, reviving the "ghost of 2013" as the government moves aggressively to defend the rupee and conserve foreign exchange reserves.
Following a public call for a year of austerity by delaying jewellery purchases, the government today hiked the effective import tax on gold and silver from 6% to 15%. The impact was instantaneous: MCX gold June futures jumped by Rs 9,000 to hit Rs 1.62 lakh per 10 grams, a 6% jump, while jewelry stocks including Kalyan Jewellers, Thangamayil, and Sky Gold plunged as much as 7%.
