New appointed Indian Finance Minister, Arun Jaitley, has signalled that the ministry is likely to reduce the gold import tax by 2-4%.

Currently, all gold imports are subject to a 15% import tax and 20% of all gold imports must be exported before any further imports can be made. The restrictions were imposed in 2013 in an attempt to reduce the Indian current deficit and protect the value of the Indian rupee.

The taxes have been extremely unpopular as gold is central to Indian culture, with Indians buying gold as a store of value and for gifts at weddings and religious festivals.

Prior to the introduction of the taxes India was the world’s largest consumer of gold and analysts expect demand to increase once the restrictions have been removed.