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.

Find out about commodities trading and learn CFD strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.