From Reuters via ZAWYA, Dubai HQ (owned by LSEG), August 26:
India slashed import duties on gold in July to 6% from 15%, a step aimed at tackling smuggling
BENGALURU: Gold demand in India during the upcoming festive season is likely to remain robust, as the substantial reduction in import duty has made prices appealing, providing comfort to retail consumers and encouraging purchases, industry officials said.
Higher demand in the world's second-largest gold consumer could support a rally in global prices, which hit a record high last week. But higher demand for gold imports could increase India's trade deficit and weigh on the rupee.
"The primary beneficiaries of the reduced duty cut will be retail consumers," said Sachin Jain, CEO of the World Gold Council's Indian operations.
India slashed import duties on gold in July to 6% from 15%, a step aimed at tackling smuggling.
Demand during the upcoming festival season will be very strong, Jain told Reuters on the sidelines of the India Gold Conference.
Gold demand in India usually strengthens towards the end of the year, which coincides with the traditional wedding season and major festivals including Diwali and Dusherra, when bullion buying is considered auspicious....
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