The gems and jewelery industry is demanding a cut in the import duty on gold from the government. Currently, the import duty on gold is 7.5 per cent.
Currently, the import duty on gold is 7.5 percent.
In the budget last year, the government imposed import duty on gold (Import duty on Gold) was cut by a whopping 5 per cent. this budget (Budget 2022There is also a demand from the jewelery industry that import duty on gold (gold import duty) be cut. Currently, the import duty on gold is 7.5 per cent. The Gems and Jewelery Export Council (GJEPC) has demanded that it should be reduced to 4 percent. Apart from this, a demand has been made to reduce the import duty on polished diamond from 7.5 percent to 2.5 percent. The Jewelery Council said that the government should not impose any duty on 10 per cent polished diamonds to the exporters for the purpose of promoting exports. A special package has also been demanded from Finance Minister Nirmala Sitharaman to help this sector.
As we know, on 1 February 2021, Nirmala Sitharaman, while presenting the budget, reduced the import duty on gold from 12.5 per cent to 7.5 per cent. Now there is a demand to reduce it to 4 percent. The people of this industry say that if the government cuts the import duty, then gold smuggling will come down. This will bring more duty money to the government exchequer and jewelery exporters will also get relief. India will export more jewelery than before.
Increase in imports raises current account deficit
The compulsion of the government is that due to increase in imports, its current account deficit increases. India imports oil, gold and electronics on a large scale. India is the second largest gold importer in the world after China. The direct effect of low exports and high imports goes to the exchequer. It shows the trade deficit. Given the current state of the economy, the government is not in a position to increase the account deficit.
Gems, jewelery exports grow 5.76 per cent in first nine months of current fiscal
Meanwhile, exports of gems and jewelery grew by 5.76 per cent to $29.08 billion during April-December of the current fiscal on good demand in major countries like the US, Hong Kong and Thailand. The Gems and Jewelery Export Council (GJEPC) said on Friday that in December 2021, exports grew by 29.49 per cent to $3.04 billion. GJEPC Chairman Colin Shah said in a statement, “Holiday and festive demand remained high in major business centers such as the US, Hong Kong, Thailand and Israel. This momentum will continue at the end of the financial year and we will be close to the target of exports of $ 41.67 billion. $ 18 billion and gold jewelery exports increased by 25.41 percent to $ 6.91 billion.
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