Budget 2024: Duty cuts on gold, silver, platinum, and diamonds to make jewellery more affordable

This festive season, you may not have to break the bank to add a bracelet or two to your collection. Gold, silver, platinum and diamond jewellery are set to become much cheaper, thanks to proposed basic customs duty (BCD) cuts on these precious metals.

The total import duty on gold and silver has been brought down from 15% to 6%. As a result, gold is cheaper by Rs 2,800 at Rs 72,700 per 10 grams (24 carats), while silver is cheaper by Rs 1,650 at Rs 87,350 per kg. With duties on platinum coming down to 6.4%, it will cost Rs 28,940 per 10 grams.

"As a fallouot of geopolitical uncertainties, prices of all precious metals were significantly high. The duty cut will bring huge relief to customers in the upcoming festive season and the subsequent marriage season in buying gold, silver, platinum, and diamond jewellery. It will also boost demand for bullion and encourage investment in gold and silver exchange-traded funds as well as sovereign gold bonds," said Haresh Acharya, director of the India Bullion and Jewellers' Association.

Several manufacturers had already begun passing on the Budget duty cuts to customers, with silver prices coming down, said Surat-based silver artefact manufacturer Mahesh Rungta.

The industry is cheering. The diamond sector, currently passing through a rough phase, sees a reduction in prices, even though small, as beneficial in boosting demand.

"The decision to exclude diamonds from the 2% equalisation levy on sales of rough diamonds will help to maintain India's leadership in the diamond industry and ensure operational sustainability. The demand for the sale of rough diamonds in 'special notified zones' through the Safe Harbour Rule (SHR) will prove a game-changer for the industry. India will be on equal footing with global centres like Belgium and Dubai," said Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council.

Due to the SHR, rough diamond selling will now be allowed in Gujarat Hira Bourse in Surat and Bharat Diamond Bourse in Mumbai.

"Surat diamond manufacturers are major beneficiaries due to the rule as they can buy diamonds locally at a globally competitive price," said Dinesh Navadiya, chairman of the Indian Diamond Institute.


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