Gold Import, Gold Import India, Import Duty: Gold prices soaring to $2222 in March 2024, marking record highs, concerns loom over a potential 90% decline in India’s gold imports for the month. A Reuters report, citing a government official and bank dealers, speculates on the drastic drop in imports.
The sharp rise in gold prices is attributed to market expectations of an imminent rate cut by the US Federal Reserve, with forecasts suggesting a potential reduction of 0.75%. Report said As a result, India’s gold import for March could see a significant downturn to 10-11 metric tons, down from 110 metric tons in February, as per a government official speaking on condition of anonymity.
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With March still underway, customs clearance data indicates a notable decrease in gold clearance, while two bullion dealers have confirmed significantly reduced imports for the month. The prevailing discount on gold has exceeded $35.
In the Sarafa market, gold prices have surpassed the 68000 mark, dissuading consumers from purchasing gold jewellery at such elevated prices. The existing tax regime imposes an 18% tax on gold, comprising a 15% import duty and 3% GST, prompting industry stakeholders to advocate for duty reduction on various platforms.
Despite the challenging market conditions, hopes remain pinned on the upcoming Akshaya Tritiya and wedding season to buoy the jewellery sector.