India’s gold industry continues to be the second-largest globally in terms of consumption and is largely met by imports. According to World Gold Council 2024 report, India witnessed a 5 percent rise in demand, on year to year basis, in 2024 compared to 2023 supported by reduction in import duty.

Outlook also remains bullish on India’s gold demand in 2025 and is expected to remain within range of 700 to 800 metric tonnes in next three years. Thus, it is important to foster the growth of the gold ore processing industry, strengthen India’s strategic mineral security, and ensure the sector’s long-term sustainability, said Mr. Rajeev Juneja, President, PHDCCI, in a press statement issued here today.

PHDCCI suggests zero import duty for Gold Ore Concentrate (HSN 26169010), in line with Copper Ore Concentrate Budget which enjoys nil duty, even though it yields approximately 12 tons of gold annually as a by-product.

Furthermore, due to reduction in import duty on finished gold from 15% to 6% in the Union Budget 2024 25, direct imports of finished gold become more attractive than domestic refining, hindering the growth of India’s refining infrastructure. The reduction of duty to zero will bring parity with Copper Ore Concentrate which is essential to protect industry viability, encourage investment, and support domestic value addition and employment, he said.

Additionally, a Production-Linked Incentive (PLI) scheme for Gold Ore Concentrate processing industry, linked to output per kilogram of gold refined will encourage sustained investment and capacity building, he said.

We appreciate that currently the government provides a zero-rated duty on the import of Gold ore concentrates (HSN-26169010) which has been a pivotal factor in attracting investments and technical expertise, he said.

We further recommend stability of import duty policies under Chapter HSN 26 by extending this duty exemption on raw materials i.e. restoration of exemption under SR. No. 133 of 50/2017 at least for another 5 years, which is set to expire in March 31, 2026. This policy will attract new investments to the country with favorable price-cost margins and reduce import content, he added.

The expansion of domestic gold production will enhance economic self-sufficiency and contribute to the GDP, with the share of gold production in GDP increasing from 0.04% currently to 0.1% by 2030, according to a study on ‘Framework to Strengthen India’s Gold Processing Industry: A Step in Building Gold Self-Reliance (2024)’ conducted by PHD Research Bureau, PHDCCI.

Overall, the Indian gold processing and manufacturing industry’s future looks promising, with widespread positive impact on employment, investment, trade balance, and government revenues, said Mr. Ranjeet Mehta, CEO& Secretary General, PHDCCI.