Expectations from Union Budget - Geofin Comtrade Ltd

Budget expectations:

Bullion

The budget expectation of the gold and gem industry is largely on bringing down the import duty of gold from the present 10 percent to 2 percent, which is anticipated to boost the domestic consumption of the yellow metal. The industry body submitted their recommendation to the Union Finance Ministry requesting to formulate a comprehensive gold policy to make India a global jewellery hub. Excluding all the bilateral or multilateral free trade agreements with other countries is the another recommendation. This is to be proposed due to severe damages to the indigenous jewellery manufactures by cheap imports from Thailand on FTA. Also, re-introduction of the metal gold loan with interest rates at par with international rates and removal of excise duty on fashion jewellery are the other recommendations.

Rubber

Increasing the import duty on natural rubber is anticipated. With a view to protest the domestic growers against cheap import, the Finance Ministry is likely to increase the duty on natural rubber from the current 20 percent to 30 percent. Since the international rubber prices dropping, imports to India has been increased several folds which forcing domestic prices to multi year lows.

Source : Equity Bulls

Keywords