PG11: INDIA EYES HIGHER IMPORT DUTIES

slate and widening their crude sources.

Brent has climbed 30 per cent to $80.47 a barrel on Monday from its low for the year on February 13. However, in rupee terms, Brent has gained 47 percent since then as the Indian currency has plunged to a record low against the dollar.

The rupee was at 72.53 to the dollar at 8.22 am GMT.

Indian refiners must pay for their crude in dollars and the soaring import costs are becoming a headache for Prime Minister Narendra Modi’s government ahead of general elections next year.

New Delhi, Sept. 24: India is likely to increase import duties on precious stones, certain types of steel and electronics but will spare gold to prevent smuggling, a finance ministry official said on Monday.

The official, who declined to be named, said that the main reason for the planned increase in duties is to curb an inflow of items that normally move between China and the US, but could be redirected because of the tariffs imposed by the two nations. India is also trying to curb imports of “non-essential” items to support the rupee.

The rupee has fallen around 12 per cent this year, forcing the government to scramble for steps to arrest the fall. Indians generally see a strong rupee as a matter of pride.

A news agency reported on Monday that the finance ministry was considering a proposal to float a special gold deposit programme to cut imports of the metal by recycling the metal inside the country.

India is the world’s second-biggest gold buyer, after China, and spent $3.64 billion on such imports last month.

— Reuters