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How will Budget 2025 impact gold & jewellery prices? Get expert insights on price trends, tax changes, and market predictions.
Indian Finance Minister Nirmala Sitharaman announced the Union Budget 2025 with significant changes in income tax slabs and customs duty fees on several items.
If you wish to find out which items got costlier and cheaper after the budget announcement, you can check out our blog!
In this blog, we will discuss the impact on gold and jewellery prices after the finance minister announced customs duty changes during the annual budget session.
Gold & Jewellery Prices After Budget 2025
The government has proposed to lower the customs duty for precious metal parts and imported jewellery from 25% to 20%.
The Budget 2025 document has lowered the basic customs duty for articles of jewellery and parts and articles of goldsmiths and silversmiths’ wares, categorised under the HSN (Harmonised System of Nomenclature) code 7113 and 7114.
Platinum
The import duty on platinum findings has been slashed to 5% from 25%. However, the government has imposed a 1.4% Agriculture Infrastructure and Development Cess on platinum findings.
A proposal is also in place for a separate HSN code for gold and platinum alloys to prevent malpractices and ensure fair play in the market.
Impact of Reduced Duty on Gold & Jewellery:
Competitive Growth
Lowering the tariff rates on raw materials means that the manufacturers can produce these goods at lower costs, hence boosting competitiveness in the market.
Consumer Advantages
Consumers of gold and jewellery products also have a reason to celebrate as a result of lowered customs duty on these items.
Lower production costs mean that the finished products will also cost comparatively less, which is beneficial for consumers.
Reduced Production Cost
Sourcing these raw materials at a lower cost means that production costs also decrease. Companies and manufacturers can also produce a lot more products at cheaper prices.
Promoting Small Businesses
Small businesses that rely on these raw materials for their production will also benefit from the reduced basic customs duty on gold and other precious metals.
Lower input costs will help them boost their profit margins and further aid in business expansion.
The Bottom Line
Gold has been a part of India’s culture and households for centuries. It is not just a commodity but also holds a lot of sentimental value, playing an important role in festivals and special occasions.
It has also emerged as a very attractive investment tool over the years. Time and time again, it has proven to be a reliable hedge against inflation.
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