Gold Prices In India Ahead: Are 24K, 22K, 18K Gold Attractive After Key Changes In Budget?

Finance Minister has announced a populist Union Budget 2025 with a main aim to continue growth momentum of the Viksit Bharat. There have been no announcements on Gold and Silver Import Duties as market expected. There are few things specified in the finance bill about increase in tariffs on gold and silver.

As per, Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL) -

With the primary goal of maintaining the growing momentum of Viksit Bharat, the finance minister has announced a populist Union Budget 2025. The budget has established the correct goal to propel India's economy by emphasizing middle-class consumption, the agricultural sector, which will boost rural demand and output, and women and youth, which will propel further growth in India.

The import duties cut/rise on gold and silver have not been announced, as few market participants anticipated. A few significant announcements, nevertheless, will be advantageous for the whole gem and jewellery sector:

• The Budget included a new tariff line to clearly distinguish imports of gold in bar form from those in other forms, considering the disruption of the market created by imports of platinum alloy. A new tariff line has been established to differentiate precious metals; items that contain 99.9% or more silver by weight, 99.5% or more gold, and 99.0% or more platinum will be categorized under headings 7106, 7108, and 7110, respectively.
• Additionally, the 25% customs tariffs on gold jewelry items have been lowered from 25% to 20%. Platinum Findings' customs duty has been lowered from 25% to 5% previously. This step will increase demand for high-end luxury gold and platinum jewelry.
• Thirdly, the increase in the turnover limit for MSMEs from Rs 250 crore to Rs 500 crore will also enable bullion market participants to expand and prosper.
• By lifting the IGCR restriction on the import of duty-free LGD (Lab Grown Diamond) seeds, the budget also gave the diamond industry some relief. This will make LGDs even more appealing and stimulate demand for them.