Author: Paul Ploumis10 Jul 2014 Last updated at 02:05:27 GMT
NEW DELHI (Scrap Monster): India’s gold imports may increase to 200 tons in the second half to December 2014, if the government cuts its gold import duty to 6 percent from a record 10 percent in Thursday's budget, Bachhraj Bamalwa, director at the All India Gems and Jewelry Trade Federation said.
The reduction of gold import duty to 6 percent is quite reasonable and it is likely to rejuvenate the week precious metal industry, Bachhraj added.
India’s Financial Minister Arun Jaitely seemed very positive and he would add some good news about the industry in the most anticipated budget, jewelers’ representatives said.
As per the report, during the monsoon season the gold industry has failed to allure the rural customers as nearly 60 percent of gold demand comes from India’s rural area where more than half of the country's 1.2 billion people live.
Last year, the government imposed the 80:20 scheme and the higher import duty to curb dangerously escalating current account deficit in the country.
As per the 80:20 scheme, the government permitted nominated agencies to import gold provided that 20 per cent of the imported gold shipment should be exported.