The All India Gems and Jewellery Federation has sought reduction in customs duty on gold to 2 per cent, from 10 per cent at present, in order to keep a tab on the smuggling of yellow metal, says a report.

The federation had met the government to discuss various issues troubling the industry. It has also asked the government to retain duty on jewellery imports in order to enhance the domestic manufacturing. This apart, the trade body has asked for developing jewellery parks, wherein artisans will be exposed to the best of technologies and quality can be maintained. There was also a suggestion of promoting fashion jewellery with lower usage of gold, adds a report.