India Gold and Jewellery Summit sees GJEPC argue regulations affect ease of doing business

By

Isabelle Crossley

Published
Nov 26, 2018

The Gem and Jewellery Export Promotion Council (GJEPC) argued for a reduction of regulations and of customs duty at the India Gold and Jewellery Summit over the weekend in New Delhi believing that this would aid the amelioration of ease of doing business.

At the India Gold and Jewellery Summit that took place from Friday November 23 to Saturday November 24 in New Delhi, the GJEPC sought a reduction in customs duty on gold to four percent from its current rate at ten percent. TNN reported that the organisation stated that such a reduction would allow them to double India’s gold jewellery exports add three million jobs by 2025.

“India has the potential to double its gold jewellery exports to $18 billion and add three million jobs to the existing 5 million by 2025,” said the GJEPC chairman, Pramod Kumar Agarwal on Friday. “But, the need of the hour is ease of doing business and reduction of customs duty on gold at four percent.”

The GJEPC also took the occasion to argue for a reduction in regulations to help with ease of doing business. Sabyasachi Ray, executive director of the GJEPC, argued that the amount of regulations on exporting gold jewellery is hindering the market and increasing smuggling. Ray stated that a reduction of regulations and the creation of a singular authority for the whole industry.

"Excessive regulation is affecting ease of doing business in gold and jewellery trade,” Ray told ET Markets at the India Gold and Jewellery Summit. “For any major transaction involving gold, we require clearances from so many agencies. Cost of financing is going up as capital is getting eroded."

 The summit’s second edition also saw the Commerce Minister Suresh Prabhu stated that he is working on the GJEPC’s demands. The draft gold policy is expected to be unveiled next month.