The bullion industry expects the government to announce significant reduction in import duty on gold in the upcoming Budget 2020. It must be noted that gold imports are curren jewellery industry tly levied customs duty of 12.5% and an additional 3% as GST.
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Apart from that, the trade anticipates relaxation in income tax limits, which could further boost disposable income, which in turn could lead to increased spending on gold and jewellery.
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The jewellers await concrete steps of action by the government to support ailing banking sector. The jewellery industry could thrive only with the support of a well-capitalized banking sector.
Several factors led to business de-growth during the previous year. These include slowdown in Indian economy, steep rise in gold prices and increased customs duty on imported gold. Under such circumstances,
The industry hopes that the Finance Ministry makes no announcement that is negative for the industry. Subsequently, jewellers expect 10-15% growth in gold jewellery demand in financial year 2020.
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