Government's Decision on Gold Import Duties

Last July, the government's decision to reduce import duties on gold significantly benefited the industry. The World Gold Council (WGC) warns that any increase in tariffs in the upcoming Budget could have adverse effects.

WGC's Concerns and Recommendations

Sachin Jain, Regional CEO, India, WGC, expressed concerns that increasing import duties might lead to higher smuggling rates, increased domestic gold prices, and a setback for the industry. He emphasized the importance of collaboration among stakeholders to sustain the positive momentum and support India's economic development.

Impact on India's Economy

The gold industry contributes approximately 1.3% to India's GDP and employs around 2-3 million people. The reduction in taxes has led to a more organized and transparent industry, strengthening the gold market.

Upcoming Budget Session

The budget session of Parliament is set to begin on January 31, with the budget presentation on February 1. This comes at a time when the economy is facing challenges with weak GDP numbers and consumption.