Indian gold and silver demand remained lower after import duty hike

Indian Gold and Silver demand remained lower after government has raised the import duty the two commodities. India Government had raised the import duty on gold and silver on Tuesday. Import duty on gold has been increased to 2% of value from the earlier flat Rs. 300/ 10 gm and that of silver to 6 % of value from Rs. 1,500/ kg.

The government has raised the import duty because of soaring demand for gold and silver in India, the world’s biggest consumer of bullion. The hike reflected in Indian jewelry demand which has already been reeling under pressure due to high prices.

Higher custom duty has brought cheers to Gold and Silver investors and tears to jewelers. Irrespective of the rise in custom duty, Indian gold imports will not fall significantly. This move will only increase government revenues and reduce very high Indian fiscal deficit at the cost of jewellery workers. – CommodityOnline

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Posted by Silver Guru on Jan 23 2012. Filed under Silver prices. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry