Industry experts say the move could boost retail demand of gold and help curtail smuggling.
Finance Minister Nirmala Sitharaman today announced a reduction in import duties on gold to 6 percent from 15 percent, a move spelling good news for those looking to buy the yellow metal. The customs duty on silver has also been slashed.
The basic duty on coins of precious metals, gold/silver findings, and gold and silver bars was reduced to 6 percent from 15 percent. It was cut to 5.35 percent from 14.35 percent for gold and silver dore.
Industry experts say it could boost retail demand and help curtail smuggling.
"To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent," Ms Sitharaman said while presenting her seventh Union Budget.
Higher demand for gold from India could boost global prices, which hit a record high this year, although that could widen India's trade deficit and put pressure on the weakening rupee.
The Finance Minister also announced an import duty exemption for 25 critical minerals, including lithium. India has been exploring ways to secure supplies of lithium, a critical raw material used to make electric vehicle batteries.
Meanwhile, solar stocks shot up by over 11 percent around 12 pm after Ms Sithraman announced on the floor of Lok Sabha that 'PM Surya Ghar Muft Bijli Yojana' witnessed "1.28 crore people registering under it".
PM Surya Ghar Muft Bijli Yojana, rolled out earlier this year, proposes to install rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month.
"The scheme has generated a remarkable response with more than 1.28 crore registrations and 14 lakh applications, and we will further encourage it," she said.
Ms Sitharaman also announced an import duty exemption for 25 critical minerals, including lithium. India has been exploring ways to secure supplies of lithium, a critical raw material used to make electric vehicle batteries.