Page 5 - Bullion World Volume 3 Issue 2 February 2023

sequelglobal.com Bullion World | Volume 3 | Issue 2 | February 2023

EDITORIAL

Dear Readers,
USE TECHNOLOGY.

The Union Budget 2023 was welcomed by a broad section
OR, GET USED of the society, as it aimed at continuation of the growth
momentum while containing deficit. However, the Indian
BY HUMANS. bullion and jewellery industry was disappointed. Let’s try and

understand the current scenario.

From November 2022, local gold price in India is discounted
to the price of duty paid bullion bars. It could be a combined
Sequel runs on technology that is effect of higher gold price and parallel trade. As a result, gold
transparent, efficient, empowering. dore imports have reduced to nil and most refineries are shut.
Besides, gold bullion bar imports have also come down, with
most overseas suppliers holding high inventories in bonded
warehouses. Thirdly, despite being one of the years with
highest number of auspicious days for marriage, demand for gold jewellery across India has not
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picked up. Given these, the industry was expecting measures that would reduce illegal gold, and
Book multiple pickup requests stimulate growth in jewellery production and exports. The budget did not have any provisions on
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View the overall summary of Viewed from the government side, the economic survey pointed to a potential flaring up of current
account deficit. Given the possibility of such an event, government of India might have considered it
your shipments
prudent to defer any decision on import duty reduction on gold.

And be a part of the complete Coming to silver, the government has increased the customs duty on silver bullion and aligned it with
logistics process! gold at 15%. Like-wise duty on silver dore has been increased to 14.35%. Would it result in drop in
demand for silver jewellery and silverware? We need to wait and watch the situation. For now, the
demand for silver is lukewarm and the market is at a discount.

Removal of capital gains tax on conversion of physical gold to EGR is a good move. Together with
the expected GST refund measure, these reforms could help in establishing gold spot exchange.

This issue of Bullion World features Expert views on the Union Budget 2023. Multi Commodity
Exchange of India has covered the price risk management using exchange derivative contracts.
National Chemical Laboratory has contributed on Silver Nano Wires. Credit rating Agency ICRA has
come out with an outlook on Organised retailers, while CARE Ratings on Cut and Polished Diamond
industry. Finally, we have an exclusive interview from Indigo precious Metals

Is there a way to collect 18% tax, facilitate growth in value-added jewellery exports and also eliminate
smuggling? Let us know your thoughts.

Best wishes,
G Srivatsava
Editor

secure@sequel.co.in linkedin.com/SequelLogistics +91 901 902 4444
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