Jewelers in a workshop, meticulously crafting gold pieces amidst tools and raw materials.
The Gem and Jewellery Export Promotion Council (GJEPC) has voiced significant concerns regarding the recent hike in gold import duties, arguing that such measures are counterproductive. The council contends that raising duties does not effectively curb gold imports but instead leads to inflated prices for consumers and increases the risk of illicit smuggling activities.
According to the GJEPC, the higher import duties directly translate to increased costs for gold, impacting both domestic consumers and the export competitiveness of the Indian gem and jewellery sector. This situation not only affects legitimate trade but also creates an environment conducive to smuggling, potentially leading to a loss of revenue for the government and undermining the organized industry.
In light of these challenges, the GJEPC is urging the government to engage in a dialogue to explore more effective strategies for managing gold imports. The council has proposed a two-pronged approach: promoting the sale of lower-carat gold jewellery to make it more accessible and affordable for a wider consumer base, and reviving the Gold Monetisation Scheme. The latter aims to bring idle gold held by households and institutions into the formal economy, thereby reducing the reliance on imports and potentially stabilizing prices.
The GJEPC’s stance highlights the delicate balance the government must strike between controlling trade deficits and supporting key export-oriented industries, particularly when dealing with commodities like gold that have significant cultural and economic importance in India.
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