Editor’s Note
This article reports on recent changes to India’s import duties on precious metals, announced in the Union Budget. The customs duty on gold and silver has been reduced from 25% to 20%, while the duty on platinum findings has seen a sharper cut to 5%. These revisions took effect on February 2.
Union Finance Minister Nirmala Sitharaman made a special announcement regarding precious metals like gold and silver in the budget presented on Saturday. In the budget, the government announced a reduction in customs duty on these from 25% to 20%. The government has also reduced customs duty on platinum findings from 25 percent to 5 percent. These changes have come into effect from today, i.e., February 2.
The reduction in customs duty will make imported jewelry and components made from precious metals cheaper. Jewelers said that lightweight gold and other metal jewelry coming from Italy and Western countries, as well as unbranded jewelry, will become cheaper. This also includes jewelry from top brands like Tiffany, Bulgari, and Cartier.
Cheaper imported jewelry will lead to a surge in its demand. Colin Shah, Managing Director of Mumbai-based Kama Jewelry, said:
The government has also proposed a separate HS code for platinum and gold alloys. Colin Shah said:
Gold jewelry imports from April to December 2024 increased by 87.4% compared to the same period in 2023. Imported gold jewelry mainly includes chains, earrings, and rings.
In Delhi’s Sarafa market on Saturday, the price of gold remained stable at a record high of Rs 84,900 per 10 grams. The All India Sarafa Association provided this information. Since January 1, gold has risen by Rs 5,510 or 7 percent. Meanwhile, on Saturday, silver strengthened by Rs 700 to reach Rs 95,700 per kilogram.