India Budget 2024: Custom duties on gold, silver slashed down to 6 from 15%
Job creation has been assigned the highest priority in the latest Indian budget being unveiled by the Finance Minister Nirmala Sitharaman. This includes extending one month’s wages for those newly employed and even support for employers.
Employment, (up)skilling, micro and SMEs, and the middle-class were listed as the top priorities for the BJP led coalition government for the financial year 2024-25.
On the wider economic front, the minister said the India economy and its growth remain the ‘shining exception’ at a time when the world continues to face multiple challenges.
This is the seventh time that Nirmala Sitharaman is presenting the budget, and this one also provides for sizeable development works for the Bihar and Andhra Pradesh. The governments in these two states are partners in the coalition government at the centre.
E-commerce hubs
India plans to create ecommerce hubs, which will also rope in private sector expertise and funding. This is as part of multiple initiatives to jumpstart growth for MSMEs and also help with new job creation.
In a major push that could incentivise multiple sectors of the economy, the financial minister said that the current customs duty regime will be put through a review in the next six months. This would be done to help with easing the duty structure and reduce disputes brought on by the current regime. Also, up for further simplification would be the GST (Goods and Service Tax) structure.
The customs duty on gold imports has also been slashed in the latest budget. That on gold and silver has been brought down to 6 per cent and on platinum to 6.4 per cent. Such a reduction had been a constant demand for India's gold and jewellery trade, many of whom also have significant presence in the UAE and Gulf markets.
The current customs duty on gold imports is 15 per cent.
The new budget is also making a big push for giving India’s cities some much needed urban makeover. This will done through formulating ‘enabling policies and market-based mechanisms’.
Plus, 14 of the largest cities in the country will get to have the latest in transit systems.
There will also be private sector’s participation in creating adequate nuclear energy capacity, which the FM says will be an integral part of India’s energy mix going forward.
According to Pankaj S. Jain, Managing Director of AskPankaj Tax Advisors, "The India Budget 2024-25 is focusing on all the key socio-economic areas - priority is on youth, employment and housing."
Legacy destinations in Bihar and Orissa were the clear beneficiaries in the budget’s focus on tourism development. The aim? Reinforce India’s status as a ‘global tourist destination, create jobs, and stimulate investments’ into the sector, according to the Financial Minister.
Across multiple initiatives outlined in the Budget 2024-25, the FM has made a mention of seeking private sector support. In many ways, this is unprecedented, industry sources say, and provides a clear picture of what the Indian economy needs - that is, more of public-private partnerships.
“It's a need of the hour - the private sector will be a key to generating employment, which is the biggest problem faced by the youth in India,” said Jitendra Gianchandani, Managing Partner at JGA Consulting.
Source: https://gulfnews.com/