GOLD NEWS

World Gold Council expects basic customs duty cuts to boost domestic gold demand

Tue Feb 04 2025

Sachin Jain, Regional CEO-India at the World Gold Council, highlights that reducing gold import duties is likely to enhance consumer interest, particularly encouraging domestic purchases over international alternatives.

In the Union Budget 2025, the government proposed reducing the basic customs duty on imported jewellery and precious metal parts from 25% to 20%, making these products more affordable.

Jain said, "It will only amplify consumers interest, who perhaps are buying overseas for certain brands will buy here."

He emphasises that as disposable incomes rise, gold consumption in India is expected to increase.

Looking ahead to 2025, Jain anticipates another strong year for gold, driven by stable core fundamentals such as geopolitical factors and hedging strategies. He also points to measures like mandatory hallmarking as significant contributors to boosting consumer trust in the domestic gold market.

Source: https://www.cnbctv18.com/