ECONOMY & INFRASTRUCTURE
Economic Affairs
Import Duty on Gold and Silver Hiked to 15% to Support Rupee
The Government of India has increased the total import duty on gold and silver from the previous 6% to 15% to curb non-essential imports and stabilize the Indian rupee.
The new duty structure comprises a 10% Basic Customs Duty (BCD) and a 5% Agriculture Infrastructure and Development Cess (AIDC).
This measure is intended to control the Current Account Deficit (CAD) which has come under pressure due to rising crude oil prices and West Asia tensions.
The duty hike also applies to platinum (raised to 15.4%), gold/silver dore, coins, and findings.
Exam Perspective: Increasing import duties on gold is a standard fiscal tool used by the government to manage foreign exchange outflows during times of global economic uncertainty.
The new duty structure comprises a 10% Basic Customs Duty (BCD) and a 5% Agriculture Infrastructure and Development Cess (AIDC).
This measure is intended to control the Current Account Deficit (CAD) which has come under pressure due to rising crude oil prices and West Asia tensions.
The duty hike also applies to platinum (raised to 15.4%), gold/silver dore, coins, and findings.
Exam Perspective: Increasing import duties on gold is a standard fiscal tool used by the government to manage foreign exchange outflows during times of global economic uncertainty.
Key Facts / Static GK
Current Account Deficit: Difference between exports and imports of goods/services
CBIC Chairman: Sanjay Kumar Agarwal
Finance Minister: Nirmala Sitharaman
CBIC Chairman: Sanjay Kumar Agarwal
Finance Minister: Nirmala Sitharaman
Practice Quiz — 14 May 2026
Q1. What is the primary objective of the 'GARUDA' framework proposed by SEBI?
Answer: (C) To fast-track the approval and launch process of AIF schemes — The GARUDA (Green-Channel AIF Rollout Upon Document Acknowledgement) framework is a fast-track approval mechanism intended to reduce regulatory delays and allow AIFs to launch within 10 working days instead of the current 30 days.
Q2. The RBI cancelled the license of Sarvodaya Co-operative Bank under which sections of the Banking Regulation Act, 1949?
Answer: (B) Sections 22(4) and 56 — The RBI cancelled the bank's license specifically under Sections 22(4) and 56 of the Banking Regulation Act, 1949, which deal with the licensing of banking companies and their application to co-operative societies.
Q3. Which of the following statements is true regarding the newly notified VB-G RAM G Act, 2025?
Answer: (C) It replaces the MGNREGA Act, 2005 and increases guaranteed work to 125 days. — The VB-G RAM G Act replaces MGNREGA and enhances the employment guarantee from 100 to 125 days annually.
Q4. How will the Bharat Maritime Insurance Pool (BMIP) settle claims exceeding USD 100 million?
Answer: (B) By utilizing the sovereign guarantee provided by the government — For claims up to USD 100 million, the pool uses its own resources. Claims exceeding this amount are supported by the sovereign guarantee after pool reserves and reinsurance are exhausted.
Q5. According to the Moody's May 2026 update, what is the revised GDP growth forecast for India for CY2027?
Answer: (D) 6.0% — Moody's reduced India's growth projection for CY2027 by 50 basis points to 6.0% (down from the previous forecast of 6.5%).
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