Big move on precious metals.
Effective import tax on Gold & Silver hiked to 15% from 6%.
A few things to watch:
1⃣ Jewellery stocks could remain under pressure, though some correction was already pricing this in.
2⃣ History suggests higher duties hit imports meaningfully: (Source: Emkay)
🪙 Gold imports fell 23% in FY23 after the July 2022 duty hike
🥈 Silver imports fell 21% in FY24 after tariff hikes in Budget 2023
3⃣ Broader implications:
-Could support INR stability by reducing import outflows
- But risks increasing smuggling/unorganised trade activity
4⃣ Next macro variable to watch closely: crude oil price hikes?
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