Budget 2024: Festivals and weddings to shine brighter with cheaper gold, silver, platinum and diamonds
Wed July 24 2024
Budget 2024: Finance Minister Nirmala Sitharaman's latest budget announcement regarding custom duty cuts on gold, silver, diamond and platinum is expected to add sparkle to the celebration of Indian festivals and
weddings.
Sitharaman proposed basic custom duty (BCD) cuts on precious metals in Union Budget 2024. This move is set to make gold, silver, platinum and diamond jewellery much cheaper.
The total import duty
on gold and silver has been brought down from 15 per cent to 6 per cent. As a
result, gold will be cheaper by Rs 2,800 at Rs 72,700 per 10 grams (24 carats),
while silver will be cheaper by Rs 1,650 at Rs 87,350 per kg, reported TOI.
With duties on platinum coming down to 6.4 per cent, it is expected to cost Rs
28,940 per 10 grams.
"The reduction in import duty on gold not only relieves consumers who have eagerly awaited this announcement but is also expected to boost gold demand in the country and create jobs for artisans. High import duty often leads to increased smuggling of gold through illegal routes, which hampers the growth of the organized retail gold trade and results in revenue losses for the government. It is expected that the duty reduction will drastically cut down gold smuggling , thereby curbing illegal trade and enhancing tax revenues. This reduction benefits organized retail jewellers, consumers, and the government, making it a positive development for all parties involved," said MP Ahammed, Chairman, Malabar Gold & Diamonds.
Several manufacturers had already begun passing on the Budget duty cuts to customers, with silver prices coming down, TOI quoted Surat-based silver artefact manufacturer Mahesh Rungta, as saying.
The industry is cheering. The diamond sector, currently passing through a rough phase, sees a reduction in prices, even though small, as beneficial in boosting demand.
A spike in share prices
Shares of gold and jewellery retailers surged on Tuesday after Sitharaman said the government will reduce the basic customs duty on the yellow metal and silver to 6 per cent. On the BSE, the stock of Senco Gold zoomed
6.16 per cent to trade at Rs 1,000.80 apiece, Rajesh Exports surged 5.49 per cent to Rs 313.90 and PC Jeweller jumped 5 per cent to trade at Rs 74.16 -- also its upper circuit limit.
In addition, shares of Titan Company climbed 3.66 per cent to Rs 3,371.65 per
piece, Tribhovandas Bhimhji Zaveri rose 2.79 per cent to Rs 140.20, and Kalyan
Jewellers India gained 1.54 per cent to Rs 537.05 apiece
on the bourse.
Source: https://economictimes.indiatimes.com/