GJF outlines its hope from Union Budget

Seeks reforms in areas of duty reduction, technology, transparency, finance, skill development, mirroring the ‘Make In India’ vision
GJF outlines its hope from Union Budget

All India Gems and Jewellery Trade Federation (GJF), the national nodal and the trade body for India’s gem and jewellery sector has outlined its expectations of better reforms from the forthcoming Union Budget. Much on the wish list mirrors Indian Prime Minister’s ‘Make In India’ vision.

The GJF has urged the Union Finance Minister to reduce gold import duty from the current 10 percent to 2 percent, to encourage manufacturing. GJF has reiterated its demand for the Government to formulate a comprehensive gold policy for India and make India a global jewellery hub. It is also seeking exclusion of jewellery from all bilateral or multi-lateral free trade agreements (FTAs) and that the government should not encourage jewellery imports at cheaper rates. GJF referred to the earlier FTA with Thailand - which failed as it discouraged indigenous jewellery manufacturing.

Mr. Haresh Soni, Chairman, GJF, said, ““Keeping in mind, Hon. Prime Minister’s vision of promoting ‘Make In India’ brand we have to protect and nurture our indigenous industry. Both oil and gold prices globally have fallen substantially now vis-à-vis last few years. We propose that the difference between import duty of raw material (gold and silver) and finished jewellery (gold and silver) to be maintained at minimum 10 percent (for gold) and 15 percent (for silver). Jewellery manufacturing cluster should be revamped by including common facility center and skill upgradation. And we also urge the Government to create a comprehensive gold mining policy for domestic exploration and for cluster development for ‘Make in India’ fashion jewellery. This will also encourage NRIs to buy jewellery from India.”

Mr. Manish Jain, Vice Chairman, GJF, spoke of the need for finance options and schemes to support the industry. He noted, “To provide incentive for the organised manufacturing facility, Government must reintroduce metal gold loans (MGL) and innovative finance options for sector. If we are not competitive on the global front, we won’t be able to become a global hub and therefore MGL rate of interest should be at par with international rate (3.5 to 6 percent in India vis-a-vis 1.5 percent in international markets). We seek removal of excise duty on fashion jewellery and also abolish excise duty on precious metals as Government is not earning any revenue on it.” He also touched upon the need for more ‘friendlier and accessible rules for transportation from manufacturing hubs to airports/ ports. Government has to offer incentives for importing technology as many indigenous processes are still manual.’

Also, GJF seeks the Centre to monetize existing investment and reduce import burden through recycling gold reserves held with temple trusts, banks, NBFCs and retail customers, and widening the availability of gold deposit schemes through banks. It seeks a multipronged approach to improve industry transparency through better industry and consumer interface, compulsory hallmarking standards, information dissemination or listing of companies, elimination of unofficial supply of gold. Infrastructure is needed to improve skill sets, promoting and standardizing professional vocational courses, fee subsidies, scholarships, reviving dying arts, rolling out the National Skill Certification and Monetary Reward Scheme (NSCMRS) to increase productivity and attract young manpower. Investment in technology is another area of need, to improve health, working conditions and productivity. GJF seeks adequate thrust for skill and infrastructure development through easy financing, incentives, subsidies, facilitation of land allocation, and supply of utilities.


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