The import duty on bars of refined gold is upped to 10% from 8% and on silver to 10% from 6%, reports the FT and Reuters.
The move follows yesterday's pledge from the finance ministry to cut the nation's current account deficit with a curb in demand for precious metals cited as a key measure.
Demand for the metals is a headache (embarrassment?) for the government as it tries to combat a rupee which recently fell to a record low against the dollar.
Gold is off marginally to $1,329 per ounce, with silver up a bit to $21.50.