With an aim to promote gold jewellery exports, the Commerce Ministry has pitched for reduction in import duty on gold in the forthcoming Budget. The Gems and Jewellery Export Promotion Council (GJEPC) has demanded cut in import duty on gold from 10% to 4%. The sector contributes significantly in the country’s overall exports.
Recently, Commerce and Industry Minister Suresh Prabhu stated that the ministry is working on a package in consultation with the gems and jewellery industry to boost export and create jobs in this labour-intensive sector.
India is the world’s second biggest gold consumer after China. The import mainly takes care of the demand of the jewellery industry, which consumes about 80% of the imported gold.