India announced Friday that it plans to double duties on gold.

Finance Minister Pranab Mukherjee calls for an increase in taxes on the yellow metal in 2012-2013. This year India has already increased import duty on gold. In his speech Mukherjee said that imports of gold and other precious metals increased by almost 50%, which was a major factor in the budget deficit.
India's demand for gold jewelry fell 44 percent in the fourth quarter, weakening the rupee and gold's volatility. India imported a record 969 tons of gold last year, a downturn is sure to follow. China is now most likely to take India's place and become the world's largest gold market.
India's customs duty on standard gold bars and coins over 99.5 percent proof will be increased from 2 percent to 4 percent.

Based on foreign press for ForTrader.org