The government raised customs duty on imported jewellery to 15 per cent from 8 per cent, setting it higher than the duty on raw gold in a move to protect the domestic jewellery industry. It would also help reduce gold imports further. "To protect the interests of small artisans, the customs duty on articles of jewellery is being increased," a finance ministry statement said. The government has also curbed raw gold imports through measures including three duty hikes this year to a record 10 per cent. The RBI has put tight restrictions on importers that have sharply curtailed supplies. Gold imports in the first four months of the current year rose 87 per cent to 383 tonnes. India's $88 billion current account deficit in 2012-13 was third highest in the world, contributed largely by high imports of gold, oil and coal. The government is counting on a the various measures announced to curb gold purchases to lower the current account deficit to $70 billion in the current fiscal, 3.7 per cent of GDP. The move comes after the government increased the customs duty on gold, silver and platinum to 10 per cent through successive revisions, thereby levying the same tax rate on the primary metal as well as on articles of jewellery. Domestic jewellery makers had since then raised concerns over imports of cheaper jewellery. The higher import duty will, however, not make gold jewellery more expensive.%% The government had raised import duties on gold to 10 per cent in August, the third increase this year, while the RBI separately imposed restrictions on imports including a ban on coin and medallion to contain yellow metal demand and stem rupee slide. Forward Markets Commission has raised the initial margin on gold futures to 5 per cent of the value of contract from 4 per cent on all the exchanges in the country. The hike in the duty on jewellery was demanded by the domestic industry on concerns over imports of cheaper jewellery from Malaysia and elsewhere. Most of the jewellery that is imported into India comes from Italy, Turkey, Dubai, Thailand, Hong Kong and the United States. The higher duty will also be applicable on goldsmiths' and silversmiths' wares and would protect interests of 'small artisans'. "This is a good move for the local industry and it will support the manufacturing sector," said Haresh Soni, Chairman of the All India Gems and Jewellery Trade Federation. India's jewellery industry numbers about 400,000 retail jewellers and is largely made up of tiny market shops owned by the same families for generations.