gold Silver
The government has reduced the import prices of gold and silver. This has reduced the fixed price used to determine custom duties and the tax burden on imports, while international prices of gold and silver still remain near their high levels. According to the notification issued by the Central Board of Indirect Taxes and Customs (CBIC), the duty has been reduced. Due to this decision, the prices of gold and silver may reduce in the coming days.
The base import price of gold has been reduced by about $ 50 to $ 1,518 per 10 grams. At the same time, the price of silver has been reduced by more than $800 and it has been fixed at $2,657 per kilogram. These changed prices will be applicable to gold and silver imported in any form under the prescribed tariff category. If there is a fall in the prices of gold and silver in the global market, then the prices of gold and silver in India will reduce. Earlier, due to higher import duty, the reduction in prices would have been less but after the reduction, the reduction will be greater. That means gold and silver will become cheaper.
What was the shortage?
This reduction in duty will be applicable to high-purity gold bars and coins as well as silver bullion and medals. However, it does not include jewellery, other articles made of precious metals and imports brought by post, courier or through baggage.
The base import price of silver was last changed on January 27, while gold prices were last changed on January 22. The government usually reviews the import prices of gold and silver every fifteen days.
meaning of deduction
With the prices of gold and silver reaching near record levels, it is believed that even if there is no change in the quantity of imports, the total price of imports will increase rapidly. This could increase concerns about trade deficit and put further pressure on the rupee, which is already weak against the dollar.
This reduction in import prices has happened at a time when trade and industry officials were already alert. He warned that increasing risks may force the government to think about increasing import duty on gold and silver in the coming weeks. But contrary to all expectations, the government has decided to make cuts.
import of gold and silver
India is the second largest consumer of gold and the largest market of silver in the world. However, the country fulfills almost its entire gold requirement through imports and is dependent on foreign countries for more than 80 percent of its silver demand.
Last year, India spent about one tenth of its total foreign exchange reserves on the import of gold and silver. It is expected that this import bill will increase further in 2026, because the prices of both the precious metals are continuously going up.
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