Union Budget proposes reduction in customs duty on gold, silver, platinum

Finance Minister Nirmala Sitharaman on Tuesday proposed to reduce customs duties on gold and silver to six per cent and on platinum to 6.4 per cent to enhance value addition in precious metal jewellery.

“To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent,” Sitharaman said while presenting Union Budget 2024-25 in the Lok Sabha.

Referring to other metals, she said steel and copper are important raw materials.

“To reduce their cost of production, I propose to remove the BCD (Basic Customs Duty) on ferro nickel and blister copper. I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap,” she said.

In the beginning of her budget speech, Sitharaman said that the people of India have reposed their faith in the government led by Prime Minister Narendra Modi and re-elected it for a historic third term under his leadership.

“We are grateful for their support, faith and trust in our policies. We are determined to ensure that all Indians, regardless of religion, caste, gender and age, make substantial progress in realising their life goals and aspirations,” she said.

The minister said that the global economy, while performing better than expected, is still in the grip of policy uncertainties.

“Elevated asset prices, political uncertainties and shipping disruptions continue to pose significant downside risks for growth and upside risks to inflation.”

She said India’s economic growth continues to be the shining exception and will remain so in the years ahead.

“India’s inflation continues to be low, stable and moving towards the 4 per cent target. Core inflation (non-food, non-fuel) currently is 3.1 per cent. Steps are being taken to ensure supplies of perishable goods reach market adequately,” she said.

The minister said that the government will undertake a comprehensive review of the agriculture research setup to bring focus on raising productivity and developing climate resilient varieties.

“Funding will be provided in challenge mode, including to the private sector. Domain experts both from the government and outside will oversee the conduct of such research,” she said.