In a significant move aimed at bolstering the gems & jewellery sector, the Budget 2024-25 has announced a substantial reduction in customs duties on gold, silver, and platinum. Finance Minister Nirmala Sitharaman revealed that the duties on gold and silver have been slashed to 6 percent from the previous 15 percent, while platinum will now attract 6.4 percent customs duty, down from 15.4 percent.
The decision, announced during the Budget speech on Tuesday, is expected to stimulate domestic value addition in gold and precious metal jewellery manufacturing within the country. Previously, gold and silver imports were subject to a basic customs duty of 10 percent, supplemented by an additional 5 percent under the Agriculture Infrastructure and Development Cess (AIDC), resulting in a total duty of 15 percent.
The gems & jewellery industry has long advocated for a reduction in gold import duties, citing concerns that high tariffs were contributing to increased illegal activities such as gold smuggling. Industry stakeholders argued that lowering import duties would curb illicit inflows of gold and simultaneously boost the legal demand for gold and jewellery within India.
The move to lower duties aligns with broader efforts to support the domestic jewellery sector and enhance its competitiveness in the global market. The Commerce & Industry Ministry had also been actively advocating for reduced import duties on gold and silver to promote growth and investment in the industry.
The revised customs duties are set to provide a significant impetus to the gems & jewellery sector, encouraging greater domestic manufacturing and reducing dependency on imported goods. Industry experts and stakeholders have welcomed the decision, anticipating positive growth and development opportunities for the sector in the coming fiscal year.
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