Budget 2024: Gems, jewellery exporters seek import duty cut on gold, silver, platinum bars to 4%

In a pre-budget meeting with Finance Minister Nirmala Sitharaman, the Gems and Jewellery Export Promotion Council said the Indian gems and jewellery industry contributes around 10% to total merchandise exports.

However, the industry is currently facing some challenges due to the geopolitical scenario, the emergence of the beneficiation scheme, and issues related to rough diamond sourcing, it added.

Against the backdrop of the macroeconomic scenario, the council urged the government to take measures to revive exports in this sector.

It also requested to introduce the sale of rough diamonds in SNZs (special notified zones); and ”reduce the import duty on gold, silver, and platinum bars to 4%; and introduce duty drawback on exports of platinum jewellery to take advantage of India UAE comprehensive economic cooperation agreement”.

These measures are crucial to give a competitive edge to our players and boost exports and at the same time generate employment in the sector, it added.

With a view to further extend and expand the scope of SNZs, GJEPC also suggested the government to allow globally recognised diamond broking/ trading houses.

”The council has also sought a reduction in import duty on precious metals Gold Bar from 15% to 4%. This will ensure that duty blockage of around Rs 982.16 crore can be released, resulting in more working capital in hand for industry,” it noted.

The untapped export potential for gold jewellery can be realised with more working capital (at least ₹2 billion of ₹11 billion in a medium period of 2 years), the council said.

GJEPC has sought a reduction in import duty on silver bars from 10% to 4% and a cut in import duty on platinum bars from 12.5% to 4%.

Source: CNBC TV18