‘Gold imports may drop 5-10%, but duty hike can’t be the solution’
Will the import duty hike on gold and platinum help curb import demand?
I don’t think the two percentage point hike in import duty will have much impact. It will be offset by the Rupee appreciation of 2 per cent. There may be a 5 to 10 per cent drop in gold imports, but duty hike can not be the solution. There are about 10 million marriages in India every year, and 70 per cent of the demand comes from rural areas where people don’t have demat accounts or credit cards.
What will be the impact of the duty hike on gold dore bars and ores from two per cent to five per cent?
Dore bars are raw, unprocessed gold. Several mines and refineries in India can get special license to