The PHD Chamber of Commerce and Industry (PHDCCI) has urged Finance Minister Nirmala Sitharaman to grant permanent zero-rated import duty on gold ore concentrate, aligning it with copper ore concentrate as this would help boost India’s gold ore concentrate processing industry and create more jobs in the country.
India’s gold ore concentrate processing industry, which commenced in 2021, has the potential to significantly boost the nation’s economy by reducing gold bullion imports, generating high-value employment, and advancing self-reliance under the Make in India vision, the chamber stated in a letter to the Finance Minister.
“At this juncture, we bring to your kind notice a crucial issue regarding the disparity in import duty structures between Gold Ore Concentrate and Copper Ore Concentrate (HSN-26030000). This imbalance is severely impacting the growth, competitiveness, and sustainability of this nascent industry,” the letter states.
It claims that the existing 2.5 per cent import duty on gold ore concentrate versus zero duty on copper ore concentrate poses a significant cost disadvantage for the gold ore concentrate processing industry.
Additionally, the exemption on the import duty for gold ore concentrate is temporary, expiring on March 31, 2026, adding further uncertainty for the industry’s future, the letter said.
The PHDCCI has requested Finance Minister Sitharaman to remove the conditionality and expiry date (March 31, 2026) from the exemption to ensure long-term policy stability.
It further states that the problem is compounded by the reduction in the import duty on finished gold from 15 per cent to 6 per cent in the Union Budget 2024-25, making direct imports of finished gold more attractive than domestic refining, hindering the growth of India’s refining infrastructure.
The business chamber has said that aligning the duty structure between gold ore processors and finished gold importers would create a fair competitive environment, ensuring a level playing field.
The letter requests the Finance Minister to consider the issue “to ensure a fair, stable, and growth-friendly policy framework for the gold ore concentrate processing industry”.
According to PHDCCI, promoting gold refining within India will reduce reliance on imported finished gold and a stable zero-duty policy will invite more investment in gold refining infrastructure. The chamber has highlighted that the expansion in gold refining would generate employment opportunities across the sector.