Increase of 2.5% customs duty on gold import a damper
Mr Rajesh Neelakanta, ED & CEO, BVC Logistics
The budget of 2019 has addressed key areas that will help the economy grow in the coming year. Logistics will play a key role in propelling India to become a USD 5 trillion economy over the next 5 years. It will boost the government's aim of using rivers for cargo transportation to decongest roads and railways. Emphasis on infrastructure and the proposed government investment of 100 lakh crore in infrastructure over the next five years is a welcome move. It also has noticeably recognized the importance of infrastructure in the growth of the country.
The increase of 2.5% customs duty on the import of gold is a damper for the precious cargo industry, which has been, as it is, affected by low lending interest of the Indian banking industry to this sector. Given the ebbing volumes in the jewellery sales, the above 2 factors are bound to cripple the industry in the foreseeable future. Hope the Government takes cognisance of the travails of this industry and help foster business.
The author is the ED & CEO of BVC Logistics.