Indian Budget Does Not Reduce Gold Import Duty

Mumbai: India’s Finance Minister Mr. Piyush Goyal recently presented a vote on account budget which proposed no direct proposals for the G&J Sector. But the budget has some proposals like rise in income tax slab and incentives for farmers would improve buying capacity. It has not proposed to reduce the import duty on Gold which is 10% at present. Here is how, the industry leaders react to the new proposals:

Mr. Pramod Kumar Agrawal, Chairman, Gem and Jewellery Export Promotion Council (GJEPC) said, “We understand that the budget presented was a vote on accounts budget and is not a full budget. We welcome Govt.’s thrust on ensuring progress and prosperity through the budget. The relief given in direct taxes to middle classes and farmers will be good for increasing jewellery demand in the country. Also we hope that with the capital infused in the banking sector and banks coming out of PCA wil help in solving the shortage of working capital for our exporters. At the same time we are disappointed that the demand for decrease in import duty of raw materials like gold, silver, c&p diamonds and coloured gemstones were not included in the budget today. We hope that during the declaration of the full budget after elections the gems and jewellery sector demands will be addressed.”

Mr. Saurabh Gadgil, CMD, PNG Jewellers and Director, National Vice President, Indian Bullion and Jewellers Association said, “The Interim Budget FY 19-20 seems to be in a progressive direction, it lends support and upliftment for the SMEs, MSMEs, agricultural sector and the tax paying middle class. The relief in income tax and various other exemptions, favourable policies towards the SME and agricultural sector will have a directly proportional effect on the gems and jewellery industry. People will have disposable income, it will surely lead to retail growth. This budget also indicates that the ministry feels it is time to clean and organize the gems and jewellery industry by introducing a comprehensive gold policy to develop gold as an asset class, provisional guidelines are being made for Gold Spot exchange, Gold Deposit account, Gold Monetization Scheme, this will form a comprehensive Mines to Market gold policy in the coming months. We are hoping this budget will bring about the required confidence in the economy and benefit the industry in the long run.”

Mr. Vaibhav Saraf, Director, Aisshpra Gems and Jewels said, “The Budget brings with it Ache Din in my opinion. With farmers given INR.6000 per annum it will help them buy better raw material which will lead to a better yield which will obviously lead to a better disposable income for them. We cater to the agricultural market majorly and therefore it will impact on sales positively. Relief in income tax slab will also result in higher disposable income for individuals.”