India has finally decided to revert to the tariff rich 80s for relevance of systemic controls on imports as the fisc crept up without much on the oil front . Most global economies are for better or for worse, not even playing with existing surpluses as imports fall faster than exports after Europe as a market shut off. India remianed a hot imports destination adding to the 17% decline in the rupee with imports growing 38% in DEcember.
the new 6% duty on sliver more than doubles the existing slab tarriff at current prices while gold is also doubled to a $1 per gm in 2% Customs and 1.5% excise.
The list includes a new 2% duty on polished diamonds. This will likely stop a little bit of the pressure on our revenue deficit but I would not have minded emergency curbs with a slight negative impact on the Export economy in this case, and brought back the Rupee to parity.
The Mac PPP Index put the $1.60 burger on par with the US meal at $4.20 ata arate of Rs 20 to the Dollar