(Image source from: India imposed gain in gold jewellery import})

India known to have increased duty on gold jewellery during Tuesday. The duty rate was from 10 per cent to 15 per cent inclined towards an action accompanying anticipation to have rapid subsidiary consequence in the UAE. Undoubtedly the most prominent jewellery shopping hub for Non-Resident Indians (NRIs). Furthermore, Indian Ministry of Finance during Tuesday established duty on jewellery higher than the 10 per cent as of a tax on raw gold inclined towards protection of the domestic jewellery industry.       

Safeguarding the interests of small artisans

The ministry emphasized on the reason of increasing of customs duty on articles of jewellery to safeguarding the interests of small artisans. In fact, the government known to have restraint  raw gold imports through measures including three duty hikes this year to a record 10 per cent. The Reserve Bank of India kept strict reservation on importers that have fiercely diminished supplies.  India imported gold jewellery worth $137.57 million in the four months from April to July present year making it a fraction of overall bullion imports, which were $2.9 billion in July alone.  Now, coming to Dubai’s jewellery retailers, who have been anticipating for a big sales boost characterized by the commencement of the festival season in India, the move came at the right time.

To move further, Shamlal Ahmad, Managing Director International Operations, Malabar Gold, a leading jewellery chain in the GCC and India, said NRI consumers and local jewellery trade would stand to an act of kindness from the elevated duty as a significant price gap has been building up between prices in the UAE and what the same would cost in India since New Delhi commenced to increase duty as part of a series of restraint to reduce its widening current account gap and support a weak rupee. Treasured metal analysts in Dubai expressed while Indian jewellery fabrication, which moved up energetically by 25 per cent in the first half to nearly 350 tonnes, will get an encouragement while it will also have positive associations on Gulf’s gold jewellery business accompanied by NRIs swiftly moving in to exploit the more attractive price advantage here.  

Cheapest places to buy gold in the world

As an interesting fact, Dubai’s tax-free status has made it one of the cheapest places to buy gold in the world. The elevation in import duty on jewellery had been a demand from the industry to guarantee the practicable aspect of the domestic jewellery manufacturing, as well prevent from  happening imports of cheaper jewellery from the GCC, Thailand and Malaysia. All India Gems and Jewellery Trade Federation approved enthusiastically the action to be very positive taking the local industry into consideration. They also brought the fact that they anticipated it will endorse the jewellery-manufacturing sector.  

(AW:SB)