Mumbai: India’s Finance Minister Mrs. Nirmala Sitharaman yesterday reduce the long awaited import duty on gold and silver from 12.5 to 7.5%. For platinum, the duty was reduced to 10%. The booster step to the already fumbling industry was whole heartedly welcomed by leaders.
Ms. Vaishali Banerjee, Managing Director, Platinum Guild International (PGI) – India:
“The Budget presented by the Finance Ministry, will lead to positive outcomes for the jewellery industry. It is heartening to see that the import duty on platinum has been reduced to 10%, which is a welcome decision made by the government. This will boost consumer sentiment and in turn demand, benefiting both the industry and the consumers as the market recovers in 2021. We look forward to a year of a strong recovery.”
Mr. Sachin Jain, Managing Director, De Beers India on the Gems and Jewellery sector:
“Import duty reduction on gold and silver from 12.5% to 7.5% is a step in the right direction and will boost the diamonds, gems and jewellery sector. As a result of this cut, prices of precious metals will fall, which in turn will spur demand and footfalls into the retail/online stores. As we did not see any drastic increase in taxes, the demand for precious diamonds, gems and jewellery will continue to be strong among consumers. Overall, the budget announcement for the sector has struck an optimistic chord in the new year.”
Mr. Somasundaram PR, Managing Director, India, World Gold Council:
“The rationalisation of import duty on gold to around 10.75% from 12.5% is a welcome move and timely. Hopefully, this is the first of a series of such cuts to make bullion an asset class that operates mainstream. It is a much needed incentive for the organised and compliant players in the bullion and gold jewellery market. A rationalised duty structure and simplified processes are fundamental to an organised trading market. Following appointment of IFSCA to regulate the International Bullion Exchange at GIFT City last year, the regulatory clarity in this budget around a domestic bullion exchange will spur infrastructure development and good delivery standards, enabling India to emerge as a major bullion trading hub.
Revision of the procedure for disposal of seized gold to expedite the process will further prevent illicit trade.
Rural welfare schemes announced by the government to boost consumer sentiment will set the consumption cycles in motion and help the jewellery retailers as well. Overall, the budget should lead to positive outcomes for the industry.”
Mr. Suvankar Sen, CEO, Senco Gold and Diamonds:
“The duty reduction is a good initiative and a support by Govt to reduce unofficial smuggling. It will help the sector to be more organized . The responsibility of SEBI to manage bullion exchange implementation will help in making the gem and jewelry sector more organized. It is a good initiative by Govt to take care of consumers, company and manufacturing sector, karigars as well.”
