Union Budget 2024 brought significant relief to the gems and jewellery industry as Finance Minister Nirmala Sitharaman proposed a reduction in basic customs duty on gold and silver to 6% and on platinum to 6.4%. This move addresses a long-standing demand from the industry, aiming to make precious metals more affordable.
Key Announcements in Budget 2024:
Reduction in Customs Duty:
- Gold and Silver: Basic customs duty reduced to 6%.
- Platinum: Basic customs duty reduced to 6.4%.
- Ferronickel and Blister Copper: Basic customs duty eliminated.
Increase in Customs Duty:
- Telecom Equipment: Duty raised from 10% to 15%.
- Ammonium Nitrate: Duty increased to 10%.
- Non-Biodegradable Plastics: Duty increased to 25%.
Other Notable Proposals:
- Brood Stocks, Shrimps, and Fish Feed: Basic customs duty reduced to 5%.
- E-commerce Export Hubs: To be set up in PPP (public-private partnership) mode to help MSMEs sell their products internationally.
- Support for Traditional Artisans: Initiatives to enable artisans to sell products in international markets.
- Solar Manufacturing: Expansion of the list of exempted capital goods used in manufacturing solar cells and panels.
India’s FM questions INDI Alliance’s credibility after being questioned on the budget allocation, particularly in the states of Andhra Pradesh & Bihar
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— DD India (@DDIndialive) July 23, 2024
Industry Impact:
The reduction in customs duty on gold, silver, and platinum is expected to boost the gems and jewellery sector by lowering costs and making these precious metals more accessible. The elimination of duties on ferronickel and blister copper will support related industries by reducing import costs.
The increase in duties on specified telecom equipment and non-biodegradable plastics reflects the government’s focus on boosting domestic manufacturing and addressing environmental concerns.
Boost to MSMEs and Traditional Artisans:
The establishment of e-commerce export hubs will provide MSMEs with a platform to expand their reach and sell products globally. This initiative, combined with support for traditional artisans, highlights the government’s commitment to promoting local craftsmanship and small businesses on an international stage.
Renewable Energy Support:
Expanding the list of exempted capital goods for solar cell and panel manufacturing underscores the government’s dedication to advancing renewable energy and supporting sustainable practices in the industry.
Conclusion:
Finance Minister Nirmala Sitharaman’s Budget 2024 brings a balanced approach to supporting various sectors of the economy. By reducing customs duties on precious metals and providing support for MSMEs and traditional artisans, the budget aims to foster growth and sustainability across industries.
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