Gold Prices: Budget 2024 May Bring Relief for Jewelry Lovers

• The gems and jewelry sector anticipates policy support in the upcoming Union Budget to address rising costs, weak demand, and global competition.
• Key demands include simplifying customs procedures to reduce logistics costs and improve delivery times for exporters.
• The industry is pushing for a reduction in GST on jewelry from 3% to 1-1.25% to boost demand and expand the tax base.
• Financing options like limited EMI schemes for small-value gold jewelry are sought to encourage consumer purchases despite high prices.
• Measures to formalize the recycling of an estimated 24,000 tons of household gold are also requested to reduce import dependence and generate economic value.

Why It Matters: The jewelry sector expects Budget 2024 to introduce policies that could lower gold prices and boost demand.