India cut import duties on gold and silver to 7.5% from 12.5%, but imposed a 2.5% cess - a separate tax - on the imports, Finance Minister Nirmala Sitharaman said.

After the changes, gold imports would effectively attract 10.75% tax against 12.5% earlier, said Somasundaram PR, the managing director of the World Gold Council’s (WGC) Indian operations.