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In her Union Budget 2024 speech, Finance Minister Nirmala Sitharaman proposed to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent read more
 "Will gold, silver jewellery get cheaper after Budget 2024 announcements by FM Sitharaman?")
A saleswoman picks gold necklaces to show it to a customer inside a jewellery showroom in Kochi. Source: REUTERS/FILE
Union Budget 2024-2025 has proposed a cut in the custom duty on gold and silver to 6 per cent from 15 per cent. Additionally, Finance Minister Nirmala Sitharaman informed that customs duty on platinum has been slashed to 6.4 per cent.
With the announcement, the government has addressed the long-pending demand of gems and jewellery industry.
“To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent,” the Finance Minister said in the Budget 2024 speech.
Will cut in custom duty reduce gold & silver prices in India?
FM Sitharaman’s announcement of a cut in custom duty has pushed the price of gold and silver stocks up.
Experts and analysts say that the decision is also expected to reduce domestic prices of gold and silver and even increase the demand for precious metals in the country.
Cut in custom duty may help push the demand for gold from India which could thereby bolster global prices which touched a record high earlier this year.
“Customs duty on gold and silver has been reduced to 6 per cent that may lead to a decline in domestic prices and perhaps lift demand. The existing duty on gold and silver is 15 per cent which comprises 10 per cent of basic custom duty and 5 per cent as Agricultural Infrastructure Development cess,” Hareesh V, Head of Commodities, Geojit Financial Services said.
Gold spot price today
On Tuesday, 10 gm 22K gold in spot market was sold at Rs 67,600 down Rs 250 from 67,850 on Monday.
Gold stock prices
At 2:22 pm on BSE, Titan Company Limited was trading at 3470.25 up 217.65 points or 6.69 per cent. Senco Gold Ltd was trading up 49.25 points or 5.22 per cent at 992.00.
Share of Tribhovandas Bhimji Zaveri climbed was at 152.45, up 16.05 points or 11.77 per cent, and Kalyan Jewellers India Ltd gained over 1 per cent and was trading at 535.20 up 6.30 points.
Reacting to the announcement and the movement of gold stocks, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said the gold prices reacted “lower” in MCX by more than Rs 2,000 to Rs 70,350, and silver by Rs 2,500 to Rs 86,600 as the market prices in the lower import duty gap of 4 per cent.
“The broad view remains volatile and weak as Comex gold stays below $2,415,” Trivedi said.
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