Budget 2024-25 has provided a big boost to the gems & jewellery sector with slashing of customs duties on gold and silver to 6 per cent from 15 per cent and on platinum to 6.4 per cent from 15.4 per cent in response to sustained demand from the industry.

“I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent to enhance domestic value addition in gold and precious metal jewellery in the country,” Finance Minister Nirmala Sitharaman said in her Budget speech on Tuesday.

So far, gold and silver imports attracted a basic customs duty of 10 per cent and Agriculture Infrastructure and Development Cess (AIDC) of another 5 per cent, taking up the total to 15 per cent.

The gems & jewellery industry had been advocating a reduction in gold import duty for long, stating that the high duties had increased unlawful activities such as smuggling of the precious metal. It had argued that a reduction in the import duties would reduce the illegal inflow of gold into the country and also boost the demand for gold and jewellery in the country.

The Commerce & Industry Ministry, too, had been pushing for a reduction in import duty for gold and silver.

Shares of jewellery stocks surged on the stock exchanges following the Budget announcement.

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