India Changes Gold Rules

May 15, 2026, 11:40
IndiaPolitics

Introduction

The Indian government wants people to buy less gold. They made gold more expensive to buy from other countries.

Main Body

Prime Minister Modi asked people to stop buying new gold. On May 13, the government raised the tax on gold and silver from 6% to 15%. The government wants to save money and keep the economy strong. Many people now use old family jewelry instead of buying new pieces. This helps them save money. However, jewelry shops are selling fewer new items. Some shops now fix old jewelry to make money. One political party, the Congress party, is unhappy. They say these rules hurt 35 million workers. They also say the government is buying its own gold while telling people to stop. They fear more people will smuggle gold illegally.

Conclusion

Jewelry shops must now change. They focus on fixing old gold because new gold costs too much.

Learning

💸 Money Words

In this story, we see words about money. These are very useful for A2 students to describe daily life.

  • Expensive →\rightarrow Costs a lot of money.
  • Save →\rightarrow To keep money for later.
  • Tax →\rightarrow Money you pay to the government.
  • Sell →\rightarrow To give something for money.

🛠️ The "Action" Shift

Look at how the jewelry shops changed what they do. This is a great way to practice Simple Present verbs for habits:

  1. They sell new gold →\rightarrow (Old habit)
  2. They fix old gold →\rightarrow (New habit)

Quick Tip: When we talk about a group (like "shops" or "people"), we use the simple verb without an "-s".

  • Correct: Shops fix gold.
  • Incorrect: Shops fixes gold.

Vocabulary Learning

gold (n.)
a shiny yellow metal used to make jewelry and coins
Example:She wore a gold necklace to the party.
tax (n.)
a fee that the government asks people to pay
Example:The government raised the tax on gold.
economy (n.)
the way a country makes and uses money
Example:A strong economy helps people buy more goods.
jewelry (n.)
decorative items like rings, necklaces, and bracelets
Example:Many people use old family jewelry instead of buying new pieces.
shop (n.)
a place where people buy goods
Example:Jewelry shops now sell fewer new items.
workers (n.)
people who do jobs to earn money
Example:The rules hurt 35 million workers.
smuggle (v.)
to move goods secretly, especially across borders
Example:They fear more people will smuggle gold illegally.
change (v.)
to make something different or to replace it
Example:Jewelry shops must now change their business.
save (v.)
to keep money or resources for later
Example:The new rules help people save money.
strong (adj.)
able to resist pressure or difficulty
Example:The government wants to keep the economy strong.