The gem and jewellery sector eagerly anticipates Finance Minister Nirmala Sitharaman’s attention to their appeals, urging a reduction in customs duty on gold and the implementation of incentives to stimulate exports.
Saiyam Mehra, Chairman of the All India Gem and Jewellery Domestic Council, emphasized the necessity for adjustments in response to escalating gold prices. Mehra suggested an increase in the PAN card transaction limit to Rs 5 lakh, up from the existing Rs 2 lakh. Particularly in rural India, where gold serves as a common investment avenue, consumers often rely on selling gold during medical emergencies.
To address limitations imposed by the current Rs 10,000 per day cash purchase limit under the Income Tax Act, Mehra proposed a significant boost to Rs 1 lakh per day. This adjustment aims to enable consumers to liquidate gold assets when required.
The gem and jewellery industry is poised to reach $21.54 billion, experiencing a 6% annual growth between 2023-27, according to industry projections. Yogesh Mudras, Managing Director of Informa Markets, highlighted the pivotal role the upcoming Budget plays in shaping the industry’s trajectory.
Mudras advocated for a reduction in import duties, particularly on crucial raw materials like gold and diamonds, from 15% to 4%. This measure, he asserted, would significantly benefit MSMEs and promote industry growth. He also stressed the importance of Research and Development (R&D) funding to establish domestic manufacturing capabilities, reducing dependence on imported machinery.
Suvankar Sen, MD & CEO of Senco Gold and Diamonds, emphasized the need for competitively priced gold loans to enhance the industry’s competitiveness. Additionally, he urged the Budget to allocate special finance to assist Indian brands and manufacturers in expanding their businesses globally, promoting the ‘Made in India’ brand on the international stage. These proposed measures, Sen asserted, would not only encourage innovation and sustainable growth but also contribute to a thriving and dynamic gems and jewellery sector.
