The Indian wedding season is set to sparkle even more with the recent budget announcement from Finance Minister Nirmala Sitharaman. The 2024 Budget has introduced significant reductions in the import duties on precious metals, making gold, silver, and platinum more affordable. This move is expected to not only ease the financial burden on consumers but also boost the demand for precious metals and related investments, further enhancing the festive and wedding celebrations across the country.
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- Finance Minister Nirmala Sitharaman’s 2024 Budget includes cuts on basic customs duty (BCD) for precious metals.
- Import duty on gold and silver has been reduced from 15% to 6%.
- Gold prices have dropped to Rs 72,700 per 10 grams (24 carats), a reduction of Rs 2,800.
- The price of gold per kg is now Rs 87,350, down by Rs 1,650.
- Duty on platinum has been slashed to 6.4%, with the price standing at Rs 28,940 per 10 grams.
- The reduction in duty is expected to bring relief to customers during the festive and wedding seasons.
- The move is anticipated to boost demand for gold, silver, and platinum jewelry.
- Increased affordability is likely to encourage investment in gold and silver exchange-traded funds (ETFs) and sovereign gold bonds.
- The decision to exclude diamonds from the 2% equalisation levy will support India’s leadership in the diamond industry.
- The Safe Harbour Rule (SHR) for rough diamond sales will enhance India’s competitiveness with global diamond centers like Belgium and Dubai.
