Union Finance Minister Pranab Mukherjee’s announcement in the Parliament today brought relief to the gem and jewellery sector. The Finance Minister has rolled back the 1 percent excise duty on branded and unbranded jewellery in India, which was announced in the Union Budget 2012.

This step will boost confidence in India’s gem and jewellery industry.

It may be recalled that the industry had voiced its protest against the excise duty in a 21 days nation-wide strike which began since March 16, 2012 and had demanded a roll back of the imposed excise duty. Following numerous representations to government authorities and leaders by the gem and jewellery industry's trade bodies, bullion traders and jewellers, the Finance Minister had indicated a possible rollback of the excise duty on non-branded jewellery, which would be decided during a debate on the Finance Bill in Parliament around May 7, 2012.