Stocks of Titan Industries, which owns jewellery brand Tanishq, fell after the government announced a hike in import duties on gold and silver. Rajesh Exports, manufacturer of gold & diamond jewellery, slumped over 2.5% after the announcement.
The government has changed the structure of duties on gold. The import duty on gold has been set at 2 per cent of the value of imports. Import duty on silver has been changed from flat Rs 1,500 per kg to 6 per cent of the value of the import.
These changes have come in response to a surge in gold and silver imports late last year. India's gold imports for FY12 are expected to touch $ 55 billion, a rise of as much as 60 per cent. The massive surge in gold imports has led to increase in current account deficit.
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