'Idea of ₹ now selling, people recognise that we need to exchange'
customs duty on gold will help reduce smuggling and aid the economy, businesses and employment, commerce and industry minister Piyush Goyal said in an interaction. He said easier norms for foreign direct investment (FDI) could entail expedited and automatic approvals. Edited excerpts:
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What's in Sitharaman's Budget for you?
The budget has reduced customs duties on precious metals. How will it impact trade and the overall economy?
A reduction in the basic customs duty of gold to 6% (from 15%) will reduce smuggling. The decision to reduce the duty was taken keeping a few things in mind. The wedding season is round the corner. The gold price we have is too far from the international prices, plus now the economy is in a good shape. When the economy was in trouble, during Covid-19, we needed to put stronger curbs on gold imports. Now we are in a strong position; foreign exchange reserve is strong. When formal gold is imported (through the official route), it only helps our economy further, in the sense that it is a part of our wealth creation. Duty reduction in gold and silver will result in employment and business growth. Value addition in gold jewellery will also boost exports, including ecommerce exports.
How will the FDI norms be eased?
We have worked out a few things that the committee of secretaries is examining. These things take a longer time (to finalise). There will be simplification in terms of
