India raises import tax on gold to 12.5% from 7.5%

India has raised its basic import duty on gold to 12.5% from 7.5%, the government said in a notification on Friday, as the world's second biggest consumer of the precious metal tries to dampen its demand, Reuters reported.

India fufills most of its gold demand through imports, which were putting pressure on the rupee INR=IN which hit a record low earlier this week.