SME Times is powered by   
Search News
Just in:   • Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia  • Europe facing earlier, stronger heatwaves: Climate scientist  • India and Namibia sign two MOUs in fields of health and entrepreneurship  • PM Modi arrives in Delhi after concluding 'productive and successful' 5-nation tour  • ASEAN to keep on consensus, inclusivity: Malaysian official 
Last updated: 09 Sep, 2019  

Jewellery.9.Thmb.jpg Gems and jewellery sector seeks gold import duty rollback

Jewellery.9.jpg
   Top Stories
» Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia
» Piyush Goyal holds talks with Malaysian minister on review of ASEAN trade pact
» India and OPEC have a unique and symbiotic relationship: Hardeep Puri
» SIP inflows hit all-time high in June, total AUM for equity MF at Rs 74.41 lakh crore
» India set to explore over 2.5 lakh sq kms area in one of largest offshore energy efforts
SME Times News Bureau | 09 Sep, 2019

The gems and jewellery sector on Monday sought immediate rollback of the 2.5 per cent hike in import duty on gold - the basic raw material for the industry - and restoring the old rate of 10 per cent.

The sector was rattled by the 25-28 per cent job losses over the past one and a half months.

The All India Gem and Jewellery Domestic Council (GJC) also demanded immediate implementation of a comprehensive integrated gold policy to save the jobs of the 55 lakh-strong labour force engaged in the business, the loss of which would also impact the dependents and families.

"The import duty should immediately be reduced from 12.5 per cent to the old level of 10 per cent. The increase has been a steep 25 per cent. Added to that there is three per cent GST on jewellery. As it is an expensive product, the total impact has been on the value," GJC vice-chairman Shankar Sen said here.

"The perception now is gold is very expensive, out of reach. In the international market, gold prices have gone up by 20 percent. So total increase in prices has been a whopping 45 per cent. This has led to the gold demand hitting a very low ebb," he said.

Providing statistics, he said that 78 tonnes of gold were imported in July last year, which figure has come down to 30 tonnes in July 2019, "of which 22 tonnes were re-exported. So only eight tonnes went for domestic consumption".

"The lack of demand in gems and jewellery has resulted in many self-employed craftsmen and artisans in the unorganised section losing jobs and shifting to other businesses. And there have been several reports of sector workers committing suicide," Sen said.

"There were "25-28 per cent visible job losses in the last one and a half months among self-employed craftsmen and artisans", he said.

Ninety per cent of the gold and jewellery industry in India comprises of small units. Organised factories make up only 10 per cent of the sector.

According to Sen, "the organised factories are involved in the exports. There, the situation has still not come to a stage where there will be job losses. But number of shifts are being reduced".

He said that even in 2002 and 2008 during the recession caused by the dot com crash and the US financial crisis, the gold industry had not been impacted.

"In fact there was a great demand to buy gold. But the scenario is completely different this time," he said.

"So, the industry badly needs the 2.5 per cent import duty cut back immediately, and then 2 per cent cut yearly, to bring it down to 4 per cent over the next four years", he addeed.

Sen also called for immediate implementation of a revamped Gold Monetization Scheme to make it more effective.

The GJC also stressed the need for a comprehensive gold policy covering various aspects of the gems and jewellery industry, including raising the threshold for mentioning PAN card details in purchase invoices from the current Rs 2 lakh to Rs five lakh.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter