బడ్జెట్ ప్రభావంతో తగ్గిన బంగారం ధరలు || Budget impacts, gold prices fall ||

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బడ్జెట్ ప్రభావంతో తగ్గిన బంగారం ధరలు || Budget impacts, gold prices fall ||

Growth in Indian exports has been hit in recent years due to pandemic-related disruptions, weak global demand and geopolitical tensions.
The Budget for 2024-25 has tried to address some of these issues by announcing cuts in customs duties on raw materials imported by major exporting sectors such as leather, textiles, marine products, mobile phones, electronic products and gems and jewellery.

The reduction in customs duties on gold and silver to 6 per cent from 15 per cent and on platinum to 6.4 per cent from 15.4 per cent seems to be a move designed to boost one of the largest export items, gems and jewellery. Indian gems and jewellery exporters have etched a prominent place globally, ranking sixth in global markets with a 4.3 per cent share, with demand originating from a diverse basket of countries including the US, Hong Kong, the UAE and Belgium. But the cloudy economic outlook for US and China, geopolitical tensions and pricing pressures from lab-grown diamonds have caused gem and jewellery exports to decline 12 per cent in FY24. Due attention needs to be paid to the sector which enjoys 15.7 per cent share in India’s merchandise exports and is a significant contributor to employment generation.