Budget 2025 expectations: Will gold be made more affordable

As the Indian economy continues to evolve, gold remains a significant asset for many citizens. With the upcoming Union Budget 2025, gold traders, including jewelers and bullion sellers, are looking for supportive measures from Finance Minister Nirmala Sitharaman. They hope to see strategies that will empower the Indian middle class to invest in gold, especially in light of rising prices. This article explores the expectations of the gold industry and the potential impact of the budget on this vital sector.

Strengthening Middle-Class Purchasing Power

Gold has long been a symbol of wealth and tradition in India. However, with soaring prices, many middle-class families find it increasingly difficult to purchase gold. Traders are advocating for a mechanism that allows customers to buy gold through Equated Monthly Installments (EMIs). This approach could make gold more accessible to a broader audience, thereby stimulating demand.

In addition to facilitating purchases, industry leaders are calling for increased funding for the upskilling of artisans. This initiative aims to enhance the craftsmanship of gold jewelry, ensuring that it meets both domestic and international standards. Prithviraj Kothari, president of the India Bullion & Jewellers Association (IBJA), emphasized the need for a single regulatory body for the gold market. Currently, multiple agencies oversee this sector, which can lead to confusion and inefficiencies. A unified regulatory framework could streamline operations and enhance transparency.

Moreover, the gold industry plays a crucial role in providing employment opportunities for India’s youth. By investing in skill development, the government can help create a more robust workforce that meets the demands of the evolving market.

Reducing Import Duties and Tax Rates

Another significant expectation from the upcoming budget is the reduction of import duties on gold. Currently, bullion traders operate on a delicate margin of just 0.65%. Lowering import duties could increase this margin, allowing traders to offer more competitive prices. Suvankar Sen, MD & CEO of Senco Gold and Diamonds, highlighted the importance of reducing tax rates to bring liquidity into the economy. He believes that infrastructural spending in the jewelry sector could further stimulate growth.

Saurabh Gadgil, chairman and managing director of PNG Jewellers, echoed these sentiments. He pointed out that well-designed policies and tax reforms could benefit the common man, ultimately driving demand and consumption. Initiatives such as enhancing gold monetization schemes could also improve efficiency and boost demand.

The jewelry industry has seen a rise in compliance and credibility, as evidenced by recent IPOs. This trend indicates a shift towards organized practices, which can attract more participants to the market. By fostering a favorable environment for investment, the government can help the gold sector flourish.

Maximizing Export Potential

The gold industry is not only vital for domestic consumption but also plays a significant role in India’s export economy. Currently, gold jewelry contributes about 5% to India’s total exports. Industry leaders believe that this potential can be maximized through policies that optimize gold circulation and encourage sustainable practices.

By focusing on sustainable practices, the government can help boost jewelry exports while also addressing environmental concerns. This dual approach can enhance India’s reputation in the global market and attract more international buyers. Furthermore, strengthening the gold monetization scheme can provide a more structured way for individuals to invest in gold, thereby increasing its circulation in the economy.


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