Jewellery duty increased in India

<p>India has confirmed it is increasing its duty on gold jewellery.</p>

India's government has confirmed that it has increased the duty charged on gold jewellery imports into the Asian country.

The ministry revealed that duty is going to be boosted from ten per cent to 15 per cent.

It said: "There is an apprehension that Indian jewellery makers would not be able to compete with cheaper imports, particularly when the majority of the imported jewellery is machine-made, as compared to handmade jewellery in India."

This is the third time this year that the Indian government has made the duty for gold jewellery imports more expensive. The country is believed to be the biggest consumer of gold in the world.

Haresh Soni, chairman of the All India Gems and Jewellery Trade Federation, welcomed the move. He said: "This is a good move for the local industry and it will support the manufacturing sector."

Goldman Sachs recently confirmed its gold price forecast has been increased for the second half of the year, with the value of the precious metal now expected to reach as high as $1,388 (£893.50) from $1,300 an ounce.

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