export duty

The government has imposed a Rs 3 per litre windfall tax on petrol exports while reducing levies on diesel and aviation fuel. These revised rates, effective May 16, aim to ensure domestic fuel availability and prevent excessive profits from elevated global crude oil prices amid the West Asia conflict.

India has moved silver imports to a "restricted" category, requiring government approval, to prevent traders from exploiting a duty gap created by a recent 15% import tax hike. This move aims to curb arbitrage opportunities through the India-UAE free trade agreement, protect foreign exchange reserves, and control precious metal inflows, while exempting export-oriented industries.

Evasion of Around Rs 65 crore Linked to One SEZ Unit

India's merchandise trade deficit surged to $28.38 billion in April, driven by a 10% rise in imports despite a significant drop in shipments from the Middle East. Elevated crude oil prices and global supply disruptions contributed to increased import costs, raising concerns about the external sector and the rupee's stability.

Gold import duty has been raised to 15%, a move expected to increase domestic prices and alter trade patterns. SBI Research reports that past duty hikes have widened the gap between international and domestic prices, potentially diverting supply to informal channels. Import values have risen while volumes have fallen, indicating price-driven import growth.

India’s gold imports hit a record $71.98 billion in 2025-26, rising over 24% from $58 billion a year earlier. This was largely due to skyrocketing global gold prices, which have bumped up the value of imported gold.

India assures stable fuel supplies despite global disruptions and rising crude prices. However, unchanged domestic rates are causing significant losses for oil marketing companies, leading to a pressing question about potential price hikes. The government faces a fiscal burden from absorbing price shocks through tax cuts.

In a strategic move, the US is pushing to wrap up a trade deal with India that seeks to expand market access and lower trade obstacles, aiming for a remarkable $500 billion in trade by 2030. This agreement is set to bolster supply chain resiliency and attract foreign investments.

Rupee depreciation is not new, what is new however is the rapid pace at which it is falling. It’s the biggest risk for India’s external sector resilience at the moment. In just over a year, the rupee has depreciated over 14%.

India's economy has faced significant challenges from global oil price surges over the past fifty years. From the 1973 Arab embargo to the recent Hormuz disruption, these shocks have impacted inflation and foreign exchange reserves. Policymakers have continuously adapted strategies to manage these crises, balancing economic stability with consumer needs.

In a statement, the Finance Ministry also announced that the road and infrastructure cess on diesel exports will be waived for the next fortnight starting May 1. Meanwhile, the export duty on petrol will continue to remain at zero.

As India opens its markets through FTAs, domestic cost structures, especially those linked to GST credit accumulation, become even more critical to ensure a level playing field.

GOI should let the economy adjust to new energy market realities, and raise pump prices. Lower domestic fuel consumption will also mean less dollar demand & help shore up the rupee