With the primary goal of maintaining the growing momentum of Viksit Bharat, the finance minister has announced a populist Union Budget 2025. The budget has established the correct goal to propel India’s economy by emphasizing middle-class consumption, the agricultural sector, which will boost rural demand and output, and women and youth, which will propel further growth in India.

The import duties cut/rise on gold and silver have not been announced, as few market participants anticipated. A few other   significant announcements, nevertheless, will be advantageous for the whole gems and jewellery sector:

1. The Budget included a new tariff line to clearly distinguish imports of gold in bar form from those in other forms, considering the disruption of the market created by imports of platinum alloy. A new tariff line has been established to differentiate precious metals; items that contain 99.9% or more silver by weight, 99.5% or more gold, and 99.0% or more platinum will be categorized under headings 7106, 7108, and 7110, respectively.
2. Additionally, the 25% customs tariffs on gold jewellery items have been lowered from 25% to 20%. Platinum Findings’ customs duty has been lowered from 25% to 5% previously. This step will increase demand for high-end luxury gold and platinum jewellery.
3. Thirdly, the increase in the turnover limit for MSMEs from Rs 250 crore to Rs 500 crore will also enable bullion market participants to expand and prosper.
4. By lifting the IGCR restriction on the import of duty-free LGD (Lab Grown Diamond) seeds, the budget also gave the diamond industry some relief. This will make LGDs even more appealing and stimulate demand for them.

 

By Dr. Renisha Chainani, Head- Research, Augmont – Gold for all

 

 

 

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