India cuts gold, silver import duties to 6% – FinMin
India has significantly reduced import duties on gold and silver from 15 per cent to six per cent, a move aimed at stimulating domestic demand and curbing smuggling in the world’s second-largest bullion consumer.
Finance Minister Nirmala Sitharaman announced the duty cut in her budget speech on Tuesday, stating, “To enhance domestic value addition in gold and precious metal jewellery, I propose to reduce customs duties of gold and silver to 6 per cent.”
However, India’s increased demand for gold, a major global consumer, could push up international prices, which have already reached record highs this year.
In another key move, the government also exempted import duties on 25 critical minerals, including lithium.
This decision underscores India’s efforts to secure supplies of lithium, a crucial component in electric vehicle batteries.
In June, the Reserve Bank of India (RBI) significantly increased its gold buying, marking the highest monthly acquisition in nearly two years. According to their data and estimates of the World Gold Council (WGC), the central bank amassed 9.3 tons of gold during the month. This significantly surpassed the average monthly purchase of 5.6 tons seen in 2024, according to WGC.
Attribution: Reuters, World Gold Council
