New Delhi: Social media is abuzz on Wednesday after the union government increased import duties on gold and silver, just hours after banker Uday Kotak warned about looming economic shocks linked to the West Asia conflict.
Many social media users said that the billionaire banker cautioned yesterday, and it seems like the impact just started showing, connecting the two developments.
Sparsh Jain, who claims to be previously associated with Zomato, wrote on X, "A lot of what he talks about—saw it coming with disruptions in the supply chain and how @narendramodi urged citizens to exercise caution. @udaykotak, as a leader, has often been right about the economy in India. Brace for shock & tough times."
Another user wrote, "Chalo market got one more reason to fall
Now, another 300 points down tmrw due to this news. Pehle trump, phir Modi ji and ab Kotak also joined."
The center on Tuesday increased the import duty of 15 percent on the import of gold, silver, and platinum, which was earlier only 6 percent. This move is likely to curb imports, protect foreign exchange reserves, and control the current account deficit.
Speaking at the CII annual business summit 2026 in New Delhi on the same day, Kotak cautioned that rising geopolitical tensions could put pressure on India’s trade balance, currency stability, and import bill, particularly through higher commodity prices.
However, in his remarks, Kotak was referring to the wider implication on the economy because of the crisis in the Middle East and not specifically on gold and silver.
Speaking at the CII annual business summit, Kotak said, "We must prepare for the worst. Therefore, it is about preparation, being ready for tough times, rather than waiting for the shock to hit us."
Kotak also cautioned that the impact of the Iran war could be seen on energy supply very soon.
He added, "We have not seen the impact in the last two months of the Middle East war in terms of energy price transmission. It's coming."
"And it's coming big, and the consumers have not felt the pressure at all. Think about a consumer with limited income having to spend more directly on fuel and indirectly on other items for fuel or dependent on fuel. The shock is coming. We had old inventory. We had the ability for oil companies to be the shock absorber," he further added.
The Union government has been trying to curb gold imports in recent times. A 3 percent Integrated Goods and Services Tax (IGST) on gold and silver imports was imposed, which prompted banks to halt imports for more than a month. As a result, gold imports in April fell to nearly a 30-year low, according to the data available in the public domain.
According to the data, India's gold imports reached an all-time high of USD 71.98 billion, a jump of over 24 percent from the previous year which stood at USD 58 billion in FY25.
On May 13, in India, 24-karat gold is trading around Rs 15,300–Rs 15,475 per 10 grams, while 22-karat gold is approximately Rs 14,000–Rs 14,185 per 10 grams. Silver prices are highly elevated, trading around Rs 2,79,000– Rs 2,90,000 per kilogram.
Ends.
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