Sitharaman Unveils Reduced Customs Duties on Precious Metals in Union Budget 2024-25

Finance Minister Nirmala Sitharaman announced a reduction in customs duties on gold, silver, and platinum, aiming to boost value addition in jewellery. She also highlighted the government's strategy to support India's economic growth and address global uncertainties.

Finance Minister Nirmala Sitharaman on Tuesday proposed to reduce customs duties on gold and silver to six per cent and on platinum to 6.4 per cent as part of efforts to enhance value addition in precious metal jewellery. While presenting the Union Budget 2024-25 in the Lok Sabha, Sitharaman emphasized the importance of bolstering domestic value addition in jewellery.

Turning to other essential materials, Sitharaman said steel and copper are critical for production. To lower production costs, she proposed the removal of Basic Customs Duty (BCD) on ferro nickel and blister copper. Additionally, the government will continue with nil BCD on ferrous scrap and nickel cathode, alongside a concessional 2.5 per cent BCD on copper scrap.

Commencing her budget speech, Sitharaman highlighted the public's renewed trust in Prime Minister Narendra Modi's government, which has been elected for a historic third term. She reaffirmed the government's commitment to ensuring substantial progress for all citizens, regardless of demographic factors.

Sitharaman noted that despite global economic improvements, uncertainties persist due to factors like elevated asset prices, political instability, and shipping disruptions. However, she reassured that India's economy stands as a notable exception, with inflation controlled and moving towards a 4 per cent target, supported by measures to ensure adequate market supply of perishable goods.

In the agriculture sector, the government plans a comprehensive review of the research setup to focus on productivity and develop climate-resilient crop varieties. Funding will be offered in a challenge mode, including private sector participation, under the oversight of domain experts from both government and external institutions.