On July 24, 2024, gold prices in India remained stable around Rs 70,000 per 10 grams, with 24-carat gold commanding Rs 70,850 per 10 grams due to its highest purity. For those opting for 22-carat gold, which offers increased durability through a slight alloy mix, prices stood at Rs 64,940 per 10 grams.
In a recent development, the Indian government announced a reduction in customs duties across various products, including precious metals like gold and silver. Notably, the basic customs duty (BCD) on gold and silver coins, findings, and bars has been slashed from 15% to 6%. Similarly, duties on gold and silver dore have been reduced from 14.35% to 5.35%.
Meanwhile, silver traded at Rs 87,900 per kilogram on Wednesday.
City-wise, the retail prices of gold on July 24, 2024, were as follows (per 10 grams):
Delhi: 22 carat – Rs 65,090, 24 carat – Rs 71,000
Mumbai: 22 carat – Rs 64,940, 24 carat – Rs 70,850
Ahmedabad: 22 carat – Rs 64,990, 24 carat – Rs 70,900
Chennai: 22 carat – Rs 65,490, 24 carat – Rs 71,450
Kolkata: 22 carat – Rs 64,940, 24 carat – Rs 70,850
Gurugram: 22 carat – Rs 65,090, 24 carat – Rs 71,000
Lucknow: 22 carat – Rs 65,090, 24 carat – Rs 71,000
Bengaluru: 22 carat – Rs 64,940, 24 carat – Rs 70,850
Jaipur: 22 carat – Rs 65,090, 24 carat – Rs 71,100
Patna: 22 carat – Rs 64,990, 24 carat – Rs 70,900
Bhubaneshwar: 22 carat – Rs 64,940, 24 carat – Rs 70,850
Hyderabad: 22 carat – Rs 64,940, 24 carat – Rs 70,850
The reduction in customs duties is aimed at curbing smuggling activities, although it is expected to result in a significant annual revenue loss for the government, estimated at over Rs 28,000 crore based on import levels from the previous fiscal year.
India, the world’s second-largest consumer of gold, heavily relies on imports to meet domestic demand, which often impacts the country’s current account deficit and currency exchange rates. In fiscal year 2024, India imported gold worth USD 45.54 billion and silver worth USD 5.44 billion, while exporting jewellery valued at USD 13.23 billion.
The reduction in duties comes after India had previously increased its basic import duty on gold to 15% in 2022, up from 10.75%. The move underscores the government’s efforts to balance revenue considerations with consumer demand and economic stability.
The significance of gold in Indian culture, especially during festivals and weddings, continues to drive consumer demand despite market fluctuations and global price trends.
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