Will GoI reduce gold import duty in Budget 2024?

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Budget 2024: Ahead of the general budget, the Gems and Jewellery Export Promotion Council (GJEPC) has urged the government to reduce import duties on gold and polished diamonds (CPD) to help the industry remain competitive globally. India’s gem and jewellery industry depends on imports for raw materials, including gold, diamonds, silver, and colored gemstones. The GJEPC has advocated for a 4% reduction in import duties on precious metals. The council wants the government to specifically lower the current 15% duty on CPD to 11% and reduce the current 5% duty on polished diamonds to 2.5%.

The council has also requested the government to restart the ‘Diamond Imprest License’ to provide equal opportunities to small, medium, and micro enterprises (MSMEs) in the diamond export sector. This initiative will help in generation of more employment as it would encourage diamond processing and classification in factories.

Furthermore, the council has urged the government to address the long standing demand for permission approval of selling rough diamonds in special notified zones (SNZ) through the Safe Harbor Rule. For this the government needs to expand the scope of eligible entities for operation through SNZ. Currently, mining countries organize only showcase sessions in SNZ. The council has also suggested that SNZs should be allowed to operate as a free trade warehousing zone (FTWZ) when it is not utilized by foreign mining companies. It’s worth noting that the GJEPC is the apex body for the gems and jewellery industry, representing around 8,500 members in this sector, with regional offices in New Delhi, Kolkata, Chennai, Surat, and Jaipur, in addition to its headquarters in Mumbai.