During the union budget presentation on July 23, Finance Minister Nirmala Sitharaman announced a reduction in the import duty on gold from 15% to 6%.
It is expected that gold subject to the revised import duty will begin arriving in India and be available for retail sale starting August 1.
Yogesh Singhal ,Chairman of the All Bullion and Jewellers Association, noted that the reduction in import duty is expected to impact the black market for gold as well. Jewellers will no longer be able to charge a premium on gold, which had previously been as high as 15% due to illicit import practices. With the duty reduction, these practices will be curtailed, preventing jewellers from imposing additional charges on customers.
With a 9% reduction in import duty, consumers can anticipate gold becoming approximately Rs 5,000 to 6,000 rupees cheaper per 10 grams!
According to the Indian Bullion and Jewellers Association (IBJA), the price of 24-carat gold was Rs 73,218 per 10 grams on July 22, just before the budget was presented. As of July 31, the price has decreased to Rs 69,309 per 10 grams.
This represents a reduction of Rs 3,909 per 10 grams in the retail price of gold since the budget announcement.
