India, May 14 -- The Union Government on Wednesday raised import duties on precious metals as part of a broader effort to conserve foreign exchange amid mounting pressure from the West Asia crisis. Effective May 13, import duty on gold and silver has been increased from 6 per cent to 15 per cent and that on platinum has been raised from 6.4 per cent to 15.4 per cent.

"During periods of external stress, measured moderation of discretionary imports may contribute significantly to overall macro-economic stability and prudent external-sector management," a source said explaining the rationale behind the duty hike.

The Government has hiked Surcharge (SWS) and the Agriculture Infrastructure and Development cess (AIDC) to push the customs duty...