The All India Gems and Jewellery Trade Federation (GJF) has asked the government to reduce import duty on gold to 2% from its current level of 10% in order to protect the domestic industry and stop smuggling.
The proposal has been made in the light of the fall in the prices of oil and gold on international markets and because the current account deficit (CAD) is now under control, said Chairman Haresh Soni, the Gems and Jewellery Export Promotion Council (GJEPC) reported.
The GJF has also asked the government to formulate a comprehensive gold policy for India and make India a global jewelry hub. “We propose that the difference between import duty of raw material (gold and silver) and finished jewelry (gold and silver) be maintained at minimum 10% (for gold) and 15% (for silver),” Soni said.
GJF Vice Chairman Manish Jain said, ''To provide incentives for the manufacturing facility, the government must reintroduce metal gold loans and innovative finance options for the sector, the GJEPC reported.
The other key points include excluding jewelry from all bilateral or multi-lateral free trade agreements (FTAs); revamping manufacturing clusters including the setting up of common facility centers; skill upgrade programs; creating a comprehensive gold mining policy for domestic exploration; easing rules for transportation from manufacturing facilities.
