GJEPC welcomes new government budget for jewellery industry

By

Isabelle Crossley

Published
Feb 3, 2021

The Gem and Jewellery Export Promotion Council has welcomed the measures proposed for the jewellery industry in the new Union Budget for 2021 to 2022 including reductions to import duties on gold and silver. 

 
The upcoming government budget has proposed to reduce the import duty on both gold and silver from 12.5% to 7.5%, the GJEPC reported on its website, praising the move. The budget, conceived by Minister for Finance Nirmala Sitharaman, also proposes a reduction on duties on platinum to 10%. 
 
“We sincerely thank the Hon’ble Prime Minister and Hon’ble Finance Minister for this bold and pragmatic growth-oriented budget,” said GJEPC chairman, Colin Shah, in a statement, the GJEPC reported.

“The reduction in import duty from 12.5% to 7.5% will help the gem and jewellery exports become globally competitive.  Reduction in duty on raw materials would give the much-needed boost to the sector and help it to move to the next level.”
 
“High duty on precious metal had made our exports uncompetitive leading to large Indian diaspora/NRI, moving to Dubai, Hong Kong or other centres to buy jewellery which was largely impacting the employment as well as business in India,” said Shah.

“Along with this the decrease of import duty on jewellery findings to 10% will help the jewellery manufacturer exporters in a big way.”
 
The GJEPC also welcomed the move to set up a new Securities and Exchange Board of India (Sebi) regulated gold exchange. This will help to, “ease marketability and sale of gold,” said Shah.