Industry news
Mid-August Festival demand may kick off Tin and Gold purchases in India
MUMBAI (Scrap Monster): The tin,gold market in India may wake up from its slumber by mid-August when the festival season kicks off in the country. Gold purchases are likely to gain momentum with the onset of festive demand, said Sudheesh Nambiath, senior precious metals analyst at GFMS Thomsun Reuters.
According to GFMS, a large number of customers have been so far waiting on the sidelines for further clarity on gold import duty cuts. Now with Finance Ministry ruling out immediate possibilities of reduction in gold import duty, more people will venture out to buy gold with the commencement of festive season by mid-August.
"With no ambiguity about duty, demand from those waiting for clarity on that front will commence soon", added Nambiath.
The country had raised its import duty of gold from 2% to 10% in 2013 in order to check rising Current Account Deficit (CAD). There were hopes among industry participants that the newly elected government would either reinstate the old duty structure or at least lower the existing high duty structure.
However, the surging gold imports during July ’14 have prompted the government to carry on with the existing high duty structure on gold imports. Nirmala Sitharaman, Minister of State for Finance made it clear that there would be no rethink on gold duty at the moment.

  From Shenzhen Bbien Technology Limited