Jewellery industry witnessing recession due to low demand: GJC
India’s jewellery industry is witnessing recession due to slowdown in consumption which could lead to massive job losses in the coming months, according to the All India Gem and Jewellery Domestic Council (GJC).
The council feels that the hike in customs duty on imported gold coupled with high Goods and Services Tax (GST) has resulted in this situation.
It has urged the government to look into the problems of the industry and reduce customs duty on imported gold and GST on jewellery to boost the sector.
“The jewellery industry is passing through a recession due to low demand. Thousands of skilled artisans are staring at the prospects of losing jobs. The hike in customs duty and the present GST rate is affecting customer sentiment, as prices of jewellery have increased,” vice-chairman of the council, Shaankar Sen said in a statement.
“We demand that the customs duty be lowered from 12.5 percent to 10 percent and the GST rate be fixed at one percent” Sen added.
The jewellery industry has been going through a rough patch over the last few months with exports from the country falling drastically every month.
Last month, jewellery exports from India dropped by 16 percent for June as a result of increased import duty of diamonds, credit crunch, and global trade tensions.
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