Union minister Piyush Goyal highlights perks of reduced gold rate in domestic trade, shares strong stance on G7 ban on Russian diamonds

The industry should start looking at the world market with a perspective of getting higher value for intricate workmanship, artistic beauty that are a signature talent of India’s handmade industry, said the minister

Mumbai: Accompanied by industry luminaries from GJEPC and SEEPZ such as Kirit Bhansali, Vipul Shah, Sabyasachi Ray, and Neerav Bhansali, Piyush Goyal, Union Minister of Commerce and Industry, graced the 40^th IIJS Premiere Exhibition at Nesco on August 10, sharing updates and initiatives to bolster gem and jewellery trade from the Government of India.

Speaking about the vision behind the 9% import duty reduction, which has been an absolute bonanza for the industry, Goyal mentioned that efforts are underway other concerns such as the equalisation levy and sale of imported diamonds at the exhibition. “There is an issue about gold and silver rates reducing. Subsequent budgets raised the import duty rates of gold, silver, and platinum to such an extent that it almost became irrational. In a way, the incentive not to pay that duty became high, thus hurting job creation and India’s vibrant sector endorsed over the years. Therefore, it was decided to keep the rates of precious metals affordable for the Indian consumers,” Goyal explained. He added that this process has given a leg-up to the domestic market at the time of recession in developed countries.

Commenting about the G7 ban on the rough diamonds, Goyal said that many of us from the GJEPC have been actively involved in negotiations with the G7 group of countries. “Dr Jai Shankar, Rajiv Chandrashekhar and I had extensive meetings at the European Union and with the Belgian PM to work out an amicable solution. The industry is aware that the Modi govt has been actively pursuing with the trade ministers of the G7 countries. We have strongly protested against moving all the diamonds to Antwerp and have managed to get certain concessions and grants. We are working to create a process of detecting Russian diamonds in India. Should the G7 force our industry to send all our diamonds first to Antwerp, there will be a serious consequence of transparency, data protection, and added costs. We can even consider retaliation and it may so happen that their telecom equipment may be tested in J&K before they are being sold across India,” the minister cautioned.

Goyal said that India is making FTAs with developing countries, expanding opportunities in countries with high per capita income, just like the agreement of Australia. Swiss companies have committed invest US $100 billion in India to create 1 million jobs in India directly. Thus, Goyal urged companies from India to establish trade networks with EFTA countries.

The session concluded with Goyal taking stock of several other issues such as standardisation of diamonds, hand-carry parcel of colour gemstones in Jaipur, a duty drawback in export of platinum outside SEZs to provide a fillip to the vibrant manufacturing industry in the domestic market and make more business with the affordable rates of platinum now. He also weighed in on India’s prospects of having agreements similar to CEPA with countries such as Africa and more countries in the Middle East, and finally a provision of EMIs against purchase of jewellery owing to rising aspiration of middle class after the rates of gold have slumped.

Written by Shubham Dasgupta

Retail Jeweller India Exclusive