India has increased the base prices on gold and silver for travellers and individuals who import small quantities of the precious metals.

The country's Central Board of Excise and Customs, on Wednesday, announced the base import price for gold jumped by 5.7 per cent to $556 per 10 grams, while silver soared by nearly 12 per cent to $1,067 per kilogram.

The Indian federal government said the changes on the base prices of the precious metals were implemented based on reports of an earlier order on imports made by airline passengers.

Base price represents the rate at which imports are taxed, regardless of the purchase price, to prevent under-invoicing.

Analysts and investors perceive the new regulation adjustment as government's attempts to increase state revenues in order to meet fiscal deficit targets due to increasing outlays. However, the new tariff increases could affect India's annual gold imports pegged at around 800 tonnes to 900 tonnes.

India, the world's biggest gold bullion consumer, in January increased import duties on gold by 90 per cent and doubled the tax on silver, sending futures prices higher.

Earlier last month, Prithviraj Kothari, president of the Bombay Bullion Association, said India's gold imports in the first quarter of 2012 will be 50 per cent lower than last year due to the global record high prices of gold as well as high domestic interest rates.

India had imported 878 tonnes of gold in 2011, compared from 958 tonnes in 2010.