India raises import duty on gold, silver jewelry findings

January 23, 2024 - 5:34 PM
A salesman displays gold necklaces and earrings inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Mumbai, India, May 7, 2019. (Reuters/Francis Mascarenhas/File Photo)

The Indian government has increased the import duty on gold and silver findings, used in making jewelry, and on precious metal coins to 15% from 11%, effective from Jan. 22, to bring them in line with duties on gold and silver bars.

In a notification issued on Monday, India‘s Ministry of Finance also hiked the import duty on spent catalysts containing precious metals to 14.35% from 10.1%.

The move aims to prevent circumvention of the duty on gold and silver bars, a government official said, after a surge in imports in the last two months of gold findings: hooks, clasps and other components used to make jewelry.

The official was not authorized to speak with the media and requested anonymity.

India is the world’s second biggest consumer of gold, which is supplied almost entirely through imports.

— Reporting by Nikunj Ohri and Rajendra Jadhav; Editing by Tom Hogue and Edmund Klamann