Government slashes drawback rates on gold and silver jewellery exports 

The shift comes amid a 7.45% decline in gems and jewellery exports, which fell to USD 9.1 billion during the April-July period of this fiscal year 

New Delhi: In a recent move aimed at bolstering the export sector, the Indian government has significantly reduced the drawback rates for gold and silver jewellery. This adjustment follows the recent cuts in import duties on these metals. 

According to a notification from the Department of Revenue, the drawback rate for gold jewellery has been slashed from Rs 704.1 to Rs 335.5 per gram of net gold content. For silver jewellery and silver articles, the rate has been reduced to Rs 4,468 per kilogram of net silver content. 

The Duty Drawback Scheme, which refunds import duties and internal taxes on goods imported for manufacturing export products, has been updated in light of the recent budget changes. The Union Budget saw a reduction in import duties on gold and silver from 15% to 6%, and on platinum to 6.4%. 

Ajay Sahai, Director General of the Federation of Indian Export Organisations, explained, “The reduction in duty drawback for gold and silver jewellery aligns with the lower import duties announced in the budget.” 

This policy shift comes amid a 7.45% decline in gems and jewellery exports, which fell to USD 9.1 billion during the April-July period of this fiscal year. In the Union Budget, Union Finance Minister Nirmala Sitharaman had announced that customs duties on gold and silver will be reduced to 6% and platinum to 6.4%. 

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