In order to keep the industry competitive on a global scale, the Gem and Jewellery Export Promotion Council (GJEPC) has urged the government to lower import duties on gold and cut and polished diamonds ahead of the Union Budget, news agency Press Trust of India (PTI) reported.
India’s gem and jewellery industry relies heavily on imports for raw materials such as gold, diamonds, silver, and colored gemstones.
The GJEPC has urged that the current 15 per cent import duty on precious metals be reduced to 4 per cent. The industry body calls for reducing the current 5 per cent customs duty on cut and polished diamonds to 2.5 per cent.
According to the apex body, increased import taxes on polished and cut gemstones would result in lower exports and fewer jobs being created in the jewellery sector, making it harder for the industry to survive as it would lose its competitive advantage to rival nations like China and Thailand.
It asked the government to slash import duties and reinstate the diamond imprest licence.
This will level the playing field for Indian MSME diamond exporters with that of their larger counterparts, halt the exodus of Indian diamantaires from diamond mining locations, and create more jobs in the form of assorters and semi-finished diamond processing in factories, the exporters’ body said.
Read more at: The Economic Times
Share this content: