There is exciting news for those planning to buy jewellery for weddings and other special occasions. One of the most significant announcements in the Union Budget 2024 is the reduction of customs duties on gold and silver, which is expected to help bring down the currently high prices of these precious metals.
Finance Minister Nirmala Sitharaman announced that the customs duties on gold and silver will be reduced from 15% to 6%.Additionally, the customs duty on platinum will be lowered to 6.4%.
Industry experts predict that this measure may lead to a short-term decrease in jewellery prices. However, they also caution that in the long run, it could potentially widen the trade deficit and further weaken the rupee.
Here are some industry reactions:
“The government’s move to reduce the custom duties from 15% to 6% on gold and silver and from 15.4% to 6.4% on platinum in order to enhance domestic value addition in gold and precious metal jewellery in the country, is commendable. This is going to benefit the sellers and the consumers equally. To promote the development of the diamond cutting and polishing industry, the finance minister has proposed safe harbour rates for foreign mining companies selling raw diamonds in the country and that again is a great move. The budget particularly focused on employment and skilling, which is the need of the hour. I appreciate the government’s initiative of employment-linked skilling through 5 schemes and initiatives as part of the PM’s package. Truly, the budget has many announcements for the youth and the women population. Creating more jobs is vital in unlocking the demographic dividend.” says Amarendran Vummidi, Managing Partner, Vummidi Bangaru Jewellers

According to Amit Pratihari, MD, De Beers Forevermark, “The Gems and Jewellery sector has made significant contributions to India’s GDP, and we appreciate the announcements made in the Union Budget for this sector. The proposed reduction in customs duties to 6% on gold and silver, and 6.5% on platinum, will enhance sales by making these precious metals more affordable. The implementation of safe harbor rates for the diamond-cutting industry, for foreign mining companies selling rough diamonds in India, will stimulate growth, boost consumer spending, and increase global competitiveness. Furthermore, the reduction of TDS from 1% to 0.1% for e-commerce operators will substantially support the industry’s expansion. These new measures will not only strengthen the valued investment of Indian households in diamonds but also add to their emotional significance.”
Mr Gaurav Bhagat, Managing Director, Consortium Gifts says, “According to the 2024 budget, the import duties on gold and silver will decrease by 9%. This means that companies will likely pass these savings on to consumers. We can expect lower prices for gold, silver, and platinum jewelry, as well as watches and mobile phones. However, the overall impact on the lifestyle sector appears to be limited for now.” – Gaurav Bhagat, Managing Director, Consortium Gifts.