Lower Import Duty On Gold May Enhance Domestic Demand: GJC

New Delhi: All India Gem and Jewellery Domestic Council member and former Chairman Anantha Padmanaban today commended the Union Budget 2024 presented by Finance Minister Nirmala Sitharaman and said that it will help in boosting the industry.
“It’s been pending for the last 12 years & at last government has obliged by reducing it to 6%. Today with reduced customs duty consumers would get benefited from high gold prices,” he said. The current import duty on gold is 15%. The retail price of the yellow metal in Delhi is Rs. 71,510 per 10 gram of 24 carat.

Finance Minister Nirmala Sitharaman on Tuesday proposed to reduce customs duties on gold and silver to six per cent to enhance value addition in precious metal jewellery.
Padmanaban said that it is a very good move by the government in giving benefit to the common man in a big way. This will eventually result in cheaper imports of the yellow metal.

“More gold would be bought and we hope sales will also pick up now,” he added.
India is one of the largest consumers of the yellow metal in the world. Before 2023, India was the largest consumer of gold. However, China pipped India as the top gold consumer of the world in 2023 with Beijing’s demand for jewellery rising by 10 per cent and investment by 28 per cent. Releasing Gold Demand Trends for 2023 and Q4 2023, the World Gold Council, a body of gold producers, said China was the main engine of growth.

With lower purchase for the metal last year due to higher prices resulted in overall less demand but following reduction in duties on the imported gold, chances are higher that its demand from the common people is expected to catapult, the industry sources said.