GJF expects Budget 2011 to leverage the G&J industry

The All India Gems and Jewellery Trade Federation has prepared a detailed memorandum outlining expectations from Union Budget 2011, on behalf of the Indian gem and jewellery sector. The memorandum reflects the intent of seeking opportunities to streamline this sector and make it at par with other industries.

The Industry seeks: Bestowing Council status to the National Gems and jewellery body enabling it to be a part of government discussions andcontribute more proactively to legal mandates.

Do away with wealth tax on gems and jewellery, since it is a very small amount and should not be applied for personal collections.

To instruct banks to provide gold and raw material on low cost loan basis to gems and jewellery trade at an interest rate of 2.5 percent to 3.5 percent per annum. This will help increase employment in this sector.

To reduce pure investor investment interest thereby reducing volatility in gold rates by increasing cost of trading in electronic mediums or bringing in restrictions on gold trading on bourses.

Allocate funds through the National Skill development Council for GJF to enhance skills in this sector.

Mr. C Vinod Hayagriv, Chairman, All India Gems and Jewellery Trade Federation, commented, “India being the second highest consumer of gold, it is very important we look at minimizing irregularities in this sector in order to maximize profit and stabilize this industry.” While referring to the sector being treated as ‘High Risk Sector’ recently, he also mentioned that “money laundering and funding of terrorists has not happened in the normal course of business in the gem and jewellery sector.” He further added, “This sector is highly consumer centric catering to the interests of a large, growing and the central market place of gems and jewellery in India. Hence the decision that the ministry takes in the course of the next few days is very crucial and will help us chalk a way forward for the gems and jewellery industry.”