Gold Silver Import Duty: The government has increased import tariffs on gold, silver, and other precious metals from 6 per cent to 15 per cent, respectively. The measure is aimed at curbing precious metal imports and reducing pressure on the country’s foreign exchange reserves.
India continues to remain the world’s second-largest consumer of gold after China, with demand primarily driven by jewellery industry.
The move follows Prime Minister Narendra Modi’s appeal to citizens to avoid gold purchases amid rising economic stress linked to the ongoing Middle East conflict.
Higher duties are expected to reduce precious metal imports, support the rupee, and help narrow the trade deficit.
Gold Silver Import Duty: Negative, Positive - Decoded
Negative Impact: Jewellery companies such as Titan Company, Kalyan Jewellers, and Sky Gold & Diamonds may face pressure as higher tariffs increase domestic gold prices and could weaken consumer demand, particularly for discretionary purchases like coins, medallions, jewellery etc.
Positive Impact: Gold financing firms including Muthoot Finance and Manappuram Finance are likely to benefit from higher collateral values of gold loans.
