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Budget echo - Gold import duty down - prospects for the gold price to reduce!
Posted on: 03/Feb/2021 11:40:38 AM
As per the budget recently presented in the parliament, the import duty on gold and silver has been reduced. As such, the gold-jewellery traders have shared that there are prospects for the gold price per sovereign to come down further by Rs. 1000/-.
The Central Finance Minister Nirmala Seetharaman presented the budget in the parliament on Monday, 1st February. The minister announced a reduction of import duty on gold and silver from 12.5% to 7.5%. This has been hugely welcomed by the gold jewellery traders.
In this regard, the General Secretary of the Gold Jewellery Traders Association S. Sarathkumar shared, “We welcome this announcement! This will enable the production within the country as well as enhancing the exports. We had been appealing to the central government to reduce the import duty on gold and silver to be reduced to just 4%. Presently, the Import Duty is down to 7.5% from 12.5%.
However, a duty of 2.5% is levied for the development of oof the agriculture infrastructure.
On the overall outlook, there has been a reduction of 2.5% in the import duty for gold and silver. As such, the central government has given the impetus for growth for this sector. With this reduction in Gold & Silver Import Duty, there are prospects for the price of gold to come down by (up to) Rs. 1000/- per sovereign. Similarly, the price of silver can also be expected to come down.”
India is a major importer of gold in the international market while meeting its demand for gold for the gold jewellery making sector. Around 800 tons to 900 tons of gold are imported every year by India! It is worth noting at this juncture that for the last 9 months in the current financial year, the export of gems and gold jewellery had been down by 40%!
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