India’s Gold Market Shines with Customs Duty Cut, Says World Gold Council
The World Gold Council (WGC) reports that India’s gold market is set to benefit from a recent customs duty cut announced in the Union Budget. The duty on gold and silver will be reduced to 6%, and on platinum to 6.4%.
Despite a slight decline in gold demand in Q2 2024, the overall value increased by 14%. Investment demand surged by 46%, driven by expectations of price appreciation. The WGC remains optimistic about India’s gold market, citing a healthy economic environment and strong consumer demand.
Key Highlights
- Customs duty on gold and silver reduced to 6%, and on platinum to 6.4%.
- Q2 2024 gold demand value: Rs. 93,850 crores, up 14% from Q2 2023.
- Jewellery demand decreased by 17% to 106.5 tonnes.
- Investment demand surged by 46% to 43.1 tonnes.
- Gold rose by 12% year-to-date, outpacing most major asset classes.
Sachin Jain, Regional CEO, India, WGC, noted that festivals like Akshaya Tritiya and Gudi Padwa provided a temporary boost, but high prices continued to dampen consumer sentiment. However, the overall economic environment remains healthy, with GDP growth forecast at 7%.
Doubts Revealed
World Gold Council (WGC) -: The World Gold Council is an organization that helps to promote and support the gold industry. They provide information and insights about gold markets around the world.
Customs Duty -: Customs duty is a tax that the government charges on goods that are brought into the country from other countries. It makes imported goods more expensive.
Union Budget -: The Union Budget is a financial plan presented by the Indian government every year. It shows how the government plans to spend money and collect taxes.
Q2 2024 -: Q2 2024 means the second quarter of the year 2024. A quarter is a three-month period, so Q2 includes April, May, and June.
Investment Demand -: Investment demand refers to the amount of money people are willing to spend on buying gold as an investment. It means people are buying gold to save or make money in the future.
Price Appreciation -: Price appreciation means an increase in the value or price of something over time. In this case, it means people expect the price of gold to go up.