JB Insights
Let us continue to harness our collective strengths, seize emerging opportunities, and embrace change with enthusiasm.
Let us uphold our legacy of craftsmanship and integrity, and propel the industry towards unparalleled success – Vipul Shah
The Indian gem and jewellery sector is a force to reckon with in the international GJ market. GJEPC has been the apex body driving India’s export-led growth in the gem and jewellery sector since 1966.Vipul Shah, Chairman GJEPC speaks to JewelBuzz on the initiatives, strategies for growth of the GJ industry, impact of geopolitical crisis on GJ sector and government policies and regulatory frameworks aiding the growth of Indian GJ sector.
Take us through the GJEPC roadmap for the year 2024—events and initiatives, strategies for growth of the GJ industry.
GJEPC is focused on growing India’s share of the global gem and jewellery pie. The Council also has a dual focus of driving export growth and creating job opportunities in the industry. Despite challenges faced in 2023, the industry is optimistic for the year 2024.
Efforts are directed towards sustaining and increasing exports to major markets like the USA, Hong Kong, and UAE. Additionally, the industry is exploring new markets such as the UK, Italy, France, Latin America, and Cambodia among many others.
Marketing efforts will be intensified to promote Indian gems and jewellery globally. This includes organising the IIJS, the India International Gem & Jewellery Show (IGJS) in Dubai and Jaipur, actively participating in major international gem and jewellery exhibitions; and facilitating product-specific and market-specific Buyer Seller Meets.
There is also a focus on investing in technology and innovation to enhance productivity, efficiency, and competitiveness. GJEPC, in collaboration with the Ministry of Commerce & Industry and SEEPZ, has launched a Mega Common Facility Center in SEEPZ Mumbai. This initiative aims to increase manufacturing capacities, drive technological advancements, and provide extensive skill development opportunities. Importantly, the services offered will benefit both SEEPZ and Domestic Tariff Area (DTA) units, reflecting inclusivity and industry-wide progress.
The geopolitical crisis and G7 sanctions banning Russian diamonds are major concerns. What is the impact on Indian diamond industry with the manufacturing sector affected drastically with shortage of rough diamonds?
The G7/EU has considered March 1st to August 31st as the “Sunrise Period.” During this phase, the US has opted for self-certification for import shipment clearance, while the EU provides two alternatives: G7 certification and a documentary evidence-based system, facilitating Indian trade in importing goods directly to India using the documentary evidence option. Certain countries allow Mixed Origin relaxation, subject to documentary evidence. The UK has provided clarification on Grandfathering diamonds movement and the necessary procedures. As of March 1, 2024, the immediate impact of G7 sanctions appears relatively manageable, with the industry adjusting to uphold support documents, coordinate two supply chains, and comprehend country-specific requirements for legal compliance. While it is still early, being only 3 weeks into the sanctions, inquiries and feedback from members are being actively received and assessed to gain a comprehensive understanding of the situation.
How are government policies and regulatory frameworks aiding the growth of Indian GJ sector?
Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector as a focus area for export promotion. Over the years, through trade-friendly policies, the government has facilitated a remarkable surge in gem and jewellery exports, which now stand at USD 40 billion.
The recent Free Trade Agreements with key partners such as the UAE, Australia, and the European Free Trade Association (EFTA) countries—Switzerland, Iceland, Norway, and Liechtenstein—hold substantial promise for further boosting Indian gem and jewellery exports.
However, to enhance the industry’s competitiveness in global markets and ensure sustainable development, several measures have been proposed to the government:
- Safe harbour rule for sale of rough diamonds in Special Notified Zones (SNZs)
- Introduction of Diamond Imprest License and reduction in import duty on cut & polished diamonds to 2.5%
- Reduction in import duty on gold/silver/platinum bars to 4%
- Introduction of a mechanism like “Rates & Taxes Refund” through EDI system similar to GST refund.
Despite the various challenges there is always a positive spirit. What is your message to the GJ industry?
Despite facing challenges, the Indian gem and jewellery industry has always shown resilience, relying on its renowned craftsmanship and skills recognized worldwide.
Understanding its inherent strengths, the industry perceives setbacks as temporary hurdles, consistently striving for improvement by integrating the latest technologies. Today, it stands capable of meeting the diverse demands of global markets.
My message to the GJ industry is simple: Let us continue to harness our collective strengths, seize emerging opportunities, and embrace change with enthusiasm. Together, we can navigate through any adversity, upholding our legacy of craftsmanship and integrity, and propel the industry towards unparalleled success.
JB Insights
India Raises Gold, Silver Import Duty To 15% To Curb Soaring Precious Metal Import Bills and Conserve Forex
Higher Duties Could Increase Prices, Impact Exports, and Create Liquidity Pressure For MSME Manufacturers Due To Rising Working Capital Requirements
#JbExclusive
The Finance Ministry on Wednesday raised effective import duty on gold and silver from 6% to 15% — comprising 10% basic customs duty and 5% agriculture infrastructure and development cess (AIDC) — effective 13 May 2026. The move aims to curb soaring precious metal import bills and conserve foreign exchange reserves as the West Asia crisis intensifies pressure on India’s trade balance.
Markets reacted swiftly. Titan fell as much as 1.5% on the day, extending a prior two-session decline of over 10%, while Kalyan Jewellers dropped as much as 5.9%. Gold and silver ETFs rallied sharply on expectations of higher domestic bullion prices. WGC data implies the 9-percentage-point hike could suppress annual consumer demand by roughly 57 tonnes — based on an estimate of 6.4 tonnes of demand suppression per 1% duty rise.
● Industry Voices
“Higher duties could revive gold smuggling, which had eased substantially after the 2024 duty reduction. Every 1% rise in import duty reduces consumer demand by approximately 6.4 tonnes — implying the hike could suppress demand by ~57 tonnes annually.”
Prithviraj Kothari, MD, RiddiSiddhi Bullions | National President, IBJA Bullions | Chairman, JITO
“Higher duties could increase prices, impact exports, and create liquidity pressure for MSME manufacturers due to rising working capital requirements. We urge continued dialogue for balanced solutions that support both economic goals and export growth.”
Kirit Bhansali Chairman, GJEPC
“The increase in customs duty is a temporary and calibrated measure in the present economic scenario. The trade should remain calm and confident — India’s jewellery sector has always demonstrated resilience and adaptability during challenging times.”
Rajesh Rokde Chairman, GJC
“It is important for the trade fraternity to avoid panic and continue business with confidence and responsibility. GJC fully supports the nation’s larger economic priorities and remains committed to constructive engagement with policymakers.”
Avinash Gupta Vice Chairman, GJC
“Due to the simultaneous occurrence of two events—the sudden 9% hike in import duty and statements made by PM Modi—both the jewelry industry and customers find themselves in a state of confusion. This is significantly impacting jewellers, artisans, and large factories alike.
My suggestion to everyone is to remain patient and avoid panicking. Everyone should avoid protests, shop closures, or any form of aggression. Once the government’s complete process is revealed, we can then consider all options through dialogue and discussion.”
Anurag Rastogi, North India Head – IBJA
“Business is already at nearly 50% of normal levels, and the duty increase will reduce consumption volumes further. Promoting lower caratage jewellery — 9ct, 14ct, 18ct — could make products more affordable and reduce gold usage. As an industry, we must stand with the government during this period.”
K. Srinivasan, CMD, Emerald Group
“An increase in import duty on gold typically has a direct impact on retail prices, influencing short-term consumer sentiment — especially for price-sensitive buyers. In the immediate phase, some customers may postpone discretionary purchases or wait for price stability. It can lead to a 10–15% volume decline to help control gold inflows into the country.
However, gold buying in India is deeply linked to weddings, festivals, and long-term wealth preservation, so demand is usually resilient over time.”
Suvankar Sen, MD & CEO, Senco Gold and Diamonds
“Changes in import duties on gold and silver are part of an evolving policy landscape, and the industry has consistently adapted with resilience and stability. We respect the government’s decision and recognize the broader economic considerations behind such measures.
Over the years, gold import duty has moved from 15% to 6% and now back to 15%. However, gold prices have never been driven by changes in duty alone. Global trends, rupee depreciation, and consumer demand remain key factors, while recent revisions reflect an already elevated domestic gold price environment.”
Chetan Thadeshwar, CMD – Shringar House Of Mangalsutra Ltd
“At SwarnShilp, we believe any duty increase is a reminder for the industry to become faster, more efficient, and more design-driven. Our focus remains on strong inventory planning, lightweight innovation, and timely delivery to support our customers despite market volatility.”
Surabi Karthik, President — South India Bullion Association, Secretary— Gold Bullion Association, Coimbatore
The customs duty on gold has gone up from 6% to 15%. This is not a punishment for our trade. Our Prime Minister is trying to protect India’s foreign exchange in a tough global situation — war tensions, Strait of Hormuz disruption, and rising import costs.
But we have a solution from within. India’s households hold 25,000 tonnes of gold sitting idle in lockers. Let us recycle this gold instead of importing more. Instead of borrowing working capital from foreign lenders, let us use India’s own gold through the Gold Monetization Scheme — and pay interest to our own people, not foreigners. This way, we can bring imports down from 700 tonnes to 500 tonnes — saving billions for our nation.
We are 2 crore people in this trade. We are not a burden — we are nation builders. Let us lead with pride and stand by our country in this hour. Together, we can solve this — the Indian way.
N Ananthapadmanabhan, MD, NAC Jewellers
The government’s decision to raise gold import duty from 6% to 15% is unfortunate, especially when closer to 30,000 tonnes of gold remain idle in Indian households. At GJC, we have long urged stronger implementation of the Gold Monetization Scheme by appointing jewellers as collection and mobilization agents, since they can connect with consumers more effectively than banks.
We have also proposed allowing every Indian woman to bring in up to 500 grams of gold without extensive KYC. These steps could unlock 2,000–3,000 tonnes, cut import dependence, and ease forex pressure.
The hike will impact sales in the short run, but in the long run, people have to buy for the weddings, so its impact will be minimal. This hike will encourage gold to come in unofficially to a great extent, which is detrimental, and will encourage hawala transactions to a great extent, contributing to a rise in tension in our country.
Shreyans Kothari, Gen. Secretary MWGJA
“While we support the government’s vision to strengthen the economy and manage imports, it is equally important to safeguard the interests of the jewellery industry, which supports millions of livelihoods across the country. A balanced and practical approach will help both the nation and the trade grow together.”
Khushboo Ranawat, Director – SwarnShilp Chains & Jewellers Pvt Ltd
● Industry Proposals
Lower caratage push
Promote 9K, 14K & 18K jewellery to cut gold consumption and keep prices within reach
Revamp GMS
Overhaul the Gold Monetization Scheme through jeweller networks to mobilize idle household gold
Old Gold Exchange
Scale consumer recycling programmes to reduce dependency on fresh bullion imports
● Risks to watch out for
● Dubai/CEPA arbitrage — GTRI warns that the India–UAE CEPA could make UAE-routed imports cheaper, partially neutralizing the duty’s intent
● Smuggling revival — duty spikes above 10% have historically correlated with the resurgence of grey-market gold flows into India
● Export competitiveness — higher landed costs raise working capital requirements for MSME exporters and could weigh on jewellery export volumes
– Raghav Dhir, Founder & MD, Dhirsons Jewellers, Dhiraj Dhir Group, Lajpat Nagar
“The revision in import duty is a significant policy shift, and while it will inevitably push up costs across the supply chain, it also presents a timely opportunity for consumers to rethink how they engage with gold. We strongly encourage our customers to bring in their old gold and exchange it for new jewellery.
This is one of the smartest ways to stay ahead of rising prices while refreshing your collection. At the same time, we believe this is the right moment for the industry and the government to come together and formalize a robust gold monetization scheme. India holds an estimated 25,000 tonnes of gold sitting idle in homes. Unlocking even a fraction of that through a credible, consumer-friendly programme would reduce our dependence on imports, ease forex pressure, and fuel domestic trade in a meaningful way. The policy intent is clear; what we need now is a structured mechanism that gives consumers the confidence to participate.”
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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.