Gold import duty cut among key wishes of gems and jewellery sector

Union Budget 2019 India: The gems and jewellery sector expects the government to cut down the existing rate of import duty on both gold and diamonds in the upcoming budget. The government should also look at providing rebate to the foreigners on buying jewellery in India, the sector also said. The duty on importing diamonds should be lowered to 2.5 per cent in the upcoming budget, Tehmasp Printer, managing director of IGI India, told CNBC TV18. The industry also expects that the foreign miners are allowed to sell in India, he also said. Speaking on growth expectations, he said that the industry is likely to print a double digit growth in 2019 since spending power of the people has increased, as well as, the impulse buying.

Since political clarity has finally arrived after elections, the days ahead are expected to be good for the gems and jewellery sector, Chief Executive Officer (CEO) of Reliance Jewels told CNBC TV18. He also expected the budget to come up with cut in gold import duty.

Finance Minister Nirmala Sitharaman would be presenting the budget on July 5 this year. This would be her maiden budget and also that of the Modi government which was re-elected with a huge mandate recently.

Meanwhile, on Friday.  Some prominent economists met the Finance Minister and demanded further simplification of goods and services tax (GST) and  Insolvency and Bankruptcy Code (IBC)-type framework for the liquidity hit NBFC sector. They also asked the finance minister to infuse capital into the banks and harness complete potential of e-commerce sector for job creation. The budget should focus on initiating job-oriented growth steps and maintaining fiscal prudence, they also recommended.