Economy, Industry & Agriculture
Mint — Economy · 3 NovConsider the following statements regarding India's gold import duty structure and its macroeconomic rationale:
Statements
- India levies a basic customs duty on gold imports in addition to an Agriculture Infrastructure and Development Cess (AIDC), together constituting the effective import tax before the application of IGST.
- The primary stated macroeconomic objective behind hiking import duties on gold is to reduce pressure on India's foreign exchange reserves by curbing import demand for the metal.
- Higher import duties on gold have historically reduced smuggling activity, as dearer official prices deter demand altogether.
Which of the statements given above is/are correct?