Union Budget 2011 leaves G&J industry disappointed

1% duty introduced for branded jewellery; precious little for exports
Union Budget 2011 leaves G&J industry disappointed

Indian Finance Minister, Mr. Pranab Mukherjee, started off his Union Budget 2011-12 speech with India achieving ‘swift and broad based growth in 2010-11 that has put the economy back to its pre-crisis growth trajectory and Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12.’ But the budget failed to address much of the expectations of the gem and jewellery sector, which is a major contributor to India’s exports. Much to its disappointment, the Budget failed to make good on any points on the industry’s wishlist (reported earlier).

The one major setback was the re-introduction of excise duty on branded jewellery albeit of 1% this time. Earlier, the 2% excise duty on branded jewellery was abolished after the industry had registered their protest and gone through lengthy negotiations with the government. One senior member of the industry said that apart from the general negative impact, the industry was also worried about indiscriminate “visits” by excise authorities.

Vinod Hayagriv, chairman of All India Gems and Jewellery Trade Federation (GJF) is reported to have expressed his objections stating that “This was earlier discussed and abolished in 2008-09. Unmarked jewellery provides no consumer protection. We will see a reversal in trade going forward."

Sanjay Kothari, Vice Chairman GJEPC said, “There is nothing in the Union Budget 2011 specifically for the Gem and Jewellery Exports sector. Yet, the provisions for self assessment for customs duty and speedy service tax refunds are in the right direction and welcome.”


Follow DiamondWorld on Instagram: @diamondworldnet
Follow DiamondWorld on Twitter: @diamondworldnet
Follow DiamondWorld on Facebook: @diamondworldnet

logo
Diamond World
www.diamondworld.net