MUMBAI/BENGALURU, May 13 -- Indian jewellery retailers and industry bodies are recalibrating their strategies as gold becomes more expensive following the government's latest import duty hike. Companies are focusing on gold exchange schemes and lower-karat products to prevent a drop in sales volume.

On Tuesday, India raised the effective import tax on gold and silver to 15%, reversing the duty cuts announced two years ago.

The move comes as the government attempts to rein in surging precious metal imports and protect India's foreign exchange reserves amid elevated crude oil prices and geopolitical tensions in West Asia. This week, Prime Minister Narendra Modi urged citizens to defer gold purchases for a year to help conserve foreign exc...