India Slashes Gold Import Duty: Economic Boost for Gems and Jewellery

CBIC Chairman Sanjay Kumar Agarwal announced a significant reduction in gold import duty from 15% to 6%. This move aims to curb smuggling, boost the country's gems and jewellery exports, and alleviate the strain on India's current account deficit. Gold plays a crucial role in the gems and jewellery sector, providing employment to nearly 50 lakh people.

In a substantial policy shift, CBIC Chairman Sanjay Kumar Agarwal revealed on Wednesday that India has slashed import duties on gold from 15% to 6%. This measure is expected to curb rampant smuggling and bolster the nation's gems and jewellery exports.

Agarwal pointed out that seizures of smuggled gold rose to 4.8 tonnes in the last fiscal year, up from 3.5 tonnes in 2022-23. He noted that the previous duty, raised in July 2022 due to a worsening current account deficit, was now considered excessively high at 15%.

This duty cut acknowledges the significant role of gold as a raw material in the gems and jewellery industry, which generates substantial employment and contributes 8% to the nation's exports. India, being the world's second-largest gold consumer, heavily relies on imports, predominantly from Switzerland, the UAE, and South Africa. This adjustment is anticipated to alleviate pressure on the rupee and reduce the current account deficit.

(With inputs from agencies.)