In India, the gold market has been particularly buoyant following a major policy shift in the Union Budget. The government slashed import duties on gold from 15% to 6%, a move aimed at curbing smuggling and boosting the domestic market. The 9% reduction in duties took the industry by surprise, but it has been met with widespread approval, particularly as the festive season approaches—a key period for gold buying in India.
Asher O, Managing Director of India Operations at Malabar Gold & Diamonds, expressed strong confidence in the sector’s outlook, foreseeing a promising next 5 to 10 years for gold in India.
He noted that the government’s approach to the industry, coupled with the duty reduction, has sparked a surge in sales.
“The overall mood in the industry is very positive. We have witnessed very good sale immediately after the announcement of the duty cut. It is not only that 9% cut, but the approach that government has towards the industry. So it is making the whole industry very positive,” Asher O stated in an interview with CNBC-TV18.
Suvankar Sen, Managing Director of Senco Gold & Diamonds, echoed these sentiments, highlighting a noticeable uptick in sales during the second quarter of the year. “If you look at Q1, we were only growing at about 7.5%. But Q2, while we are in the middle of it, we are already seeing that the growth has been almost double of what we have seen in Q1,” Sen stated.
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He credited the duty cut for rejuvenating consumer interest, particularly as the wedding season approaches when gold purchases typically surge.
Meanwhile, Sakhila Mirza, Deputy CEO of the London Bullion Market Association believes that the growing interest from Western investors is supporting a surge in the prices of the yellow metal. She expects this interest to grow further as investors realise the long-term stability that gold brings.
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