Gems and jewellery exporters have called for a reduction in import duty on gold, silver, and platinum bars to 4 percent in the upcoming Budget. During a pre-budget meeting with Finance Minister Nirmala Sitharaman on Tuesday, the Gems and Jewellery Export Promotion Council (GJEPC) highlighted the significant contribution of the Indian gems and jewellery industry, which accounts for around 10 percent of total merchandise exports.
The council pointed out that the industry is currently facing several challenges. These include geopolitical issues, the emergence of the beneficiation scheme, and problems related to sourcing rough diamonds.
Given the current macroeconomic scenario, the council urged the government to implement measures to revive exports in this sector. They suggested introducing the sale of rough diamonds in Special Notified Zones (SNZs) and reducing the import duty on gold, silver, and platinum bars to 4 percent. Additionally, they recommended introducing duty drawbacks on platinum jewellery exports to benefit from the India-UAE Comprehensive Economic Cooperation Agreement.
The GJEPC emphasized that these measures are essential for giving Indian players a competitive edge, boosting exports, and generating employment in the sector.
To further extend the scope of SNZs, the council also suggested allowing globally recognized diamond broking and trading houses to operate within these zones.
