India is likely to cut its gold import duty to 6 per cent from a record 10pc in Thursday’s budget, leading to a rise in imports, a senior official at the country’s biggest gold trade group said on Wednesday.
Higher overseas purchases by the world’s No.2 buyer of the precious metal after China should underpin global gold prices that have risen almost 10pc this year, recovering from a 28pc plunge in 2013.
The drop to 6]pc in import duty “is practical and it may be reduced further. A reduction in import duty may encourage more demand from the consumers”, Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation, told the Reuters Gold Forum.
Bamalwa, whose federation represents more than 300,000 jewellers, met Finance Minister Arun Jaitley late last month, and said: “He (Jaitley) seemed very positive and we expect some good news about the industry.”
Jaitley’s maiden budget will be the first major policy event since Prime Minister Narendra Modi’s landslide general election win in May.
Finance ministry officials were not immediately available for comment outside business hours. Gold imports into India are likely to rise 200 tonnes in the second half to December, a 14pc increase compared with the first half, Bamalwa said.
Source:- dawn.com
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