Jewellery prices set to come down with govt reducing import duty on cut and polished diamonds

Prices of diamond studded jewellery are set to come down with the government reducing the import duty on cut and polished diamonds in the budget. Even prices of other gemstone studded jewellery are expected to come down as the duty has been reduced on cut and natural gemstones.

Simultaneously, the move will also increase exports of diamond studded jewellery India. Exports of gem and jewellery from India have already crossed the pre- pandemic level and it will get a fresh fillip due to the government’s decision to bring down duty on cut and polished diamonds from 7 per cent to 5 percent.

“The budget set a roadmap for a sustainable economic recovery, banking on infrastructure development and agricultural reform. It has also proposed measures for comprehensive economic development across the region. All these measures will definitely boost consumer sentiment and will have a favourable impact on the organised jewellery retail. The customs duty cut on polished diamonds gemstones will boost diamond jewellery sales. Overall, it’s a budget which is firmly in the line of inclusive development,” said Ahammed MP, chairman, Malabar Gold & Diamonds.

Added Colin Shah, chairman, Gem & Jewellery Export Promotion Council, “The Indian gem & jewellery sector is one of the leading contributors to the national economy and the country is the undisputed leader in diamond processing. Reduction in import duty on cut & polished diamonds to 5 per cent will further help in strengthening the sector and retain its leadership position.”

“Since more than 90% of the gem & jewellery sector consists of MSMEs, the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs up to March 2023 will be a great relief to the sector, and we are happy that its outlay has been increased by Rs 50,000 Crore to a total cover of Rs 5 lakh crore,” Shah said.

The budget has also brought much relief to the Rs 35,000 crore imitation or fashion jewellery industry in the country. “Government’s move to levy customs duty at the rate of Rs 400 per kg will discourage the importers to dump cheap quality jewellery in the Indian market,” said Nagendra Mehta, president, Imitation Jewellery Manufacturers Association.

Courtesy: Economic Times