Cut in gold import duty to help contain smuggling boost jewellery exports Goyal

     New Delhi, Jul 23 (PTI) The announcement in the Budget to cut import duty on gold will help boost domestic manufacturing and promote jewellery exports, Commerce and Industry Minister Piyush Goyal said on Tuesday.
     He also said that the decision for the removal of angel tax will further strengthen the startup ecosystem in the country.
     "The gold import duty cut to 6 per cent (from 15 per cent) will promote the manufacturing of gold and silver jewellery. It will also contain smuggling," Goyal told PTI.
     He added gold prices are high and this move would help the people as the marriage season is approaching.
     Presenting the Union Budget 2024-25 on Tuesday, Finance Minister Nirmala Sitharaman said to enhance domestic value addition in gold and precious metal jewellery in the country, the government has proposed to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent.
     He said the decision to reduce the duty was taken keeping a few things in mind such as the wedding season.
     "The gold price we have is too far from the international prices, plus now the economy is in good shape. When the economy was in trouble, during Covid-19, we needed to put stronger curbs on gold imports. Now we are in a strong position, foreign exchange reserve is strong," he said.
     He added that when formal gold is imported through the official route, it only helps the economy further.
     "Duty reduction in gold and silver will result in employment and business growth. Value addition in gold jewellery will also boost exports, including e-commerce exports," the minister said.
     Goyal also said the Budget has touched all sections of the society.
     Further, he said the focus on capital expenditure has a multiplier impact on the economy as it will help cut logistics costs, and boost manufacturing and exports as well.
     When asked about the announcement in foreign direct investment (FDI), Goyal said the ministry has put up several suggestions in this area in front of the committee of secretaries.
     The idea is further simplification in terms of process and procedures and speed of approvals.
     The government on Tuesday said rules and regulations for FDI will be simplified to facilitate inflows.
     "Maybe in some items, we could make it automatic approval mode instead of (government) approval mode. It's a mixed bag, there are many things...They will put it up with the finance minister, then the Prime Minister and then will go for Cabinet approval," he said.
     On the question that the critical mineral policy and customs exemptions are high on China, he said India needs these resources.
     "It is high on our needs. The entire world depends on China. If lithium doesn't come, then how will we increase EV mobility in India?" he said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)