The Union Budget 2024 has created a positive sentiment and buzz in the GJ industry. Industry players are calling it a game-changer. The reduction in import duties on gold, silver and platinum, abolition of the 2% Equalization Levy, Safe Harbour Rule on sale of rough diamonds at SNZs will contribute in propelling growth of GJ industry.
#BudgetBuzz from a cross section of trade and industry underscore the positive impact of the Union Budget 2024
Piyush Goyal,Union Commerce & Industry Minister : The gold import duty cut to 6 per cent (from 15 per cent) will promote the manufacturing of gold and silver jewellery. It will also contain smuggling. When formal gold is imported through the official route, it only helps the economy further. Also, this move will benefit the consumers as the marriage season is approaching.
Duty reduction in gold and silver will result in employment and business growth. Value addition in gold jewellery will also boost exports, including e-commerce exports.
Vipul Shah, Chairman, GJEPC : The Union Budget 2024 is a game-changer for the gems and jewellery sector. The reduction in import duties on gold and silver to 6% and platinum to 6.4% is a major boost for our industry, enhancing affordability for consumers and competitiveness for the manufacturing sector by releasing working capital. The abolition of the 2% Equalization Levy and introduction of the Safe Harbour Rule on sale of rough diamonds at SNZs will firmly establish India as a global rough diamond trading hub. These combined measures will propel the sector’s growth, generate lakhs of employment opportunities by benefitting the small-scale jewellery manufacturers & exporters and diamond cutters and polishers, thus contribute significantly to India’s vision of becoming a Viksit Bharat by 2047.”
Saiyam Mehra, Chairman, All India Gem & Jewellery Domestic Council:
"The reduction in the basic customs duty on gold and silver to 6% and on platinum to 6.4% is a commendable move by the government. This was a long-standing demand from the All India Gems & Jewellery Domestic Council, which represents the entire gems and jewellery industry. The customs duty reduction will benefit domestic jewellery manufacturers, especially small and medium enterprises, encouraging them to transition gradually to the formal channel. Additionally, the Finance Minister has also increased the scope of working capital loans to SMEs and MSMEs, which will help these units expand their businesses in the future. The extension of the direct benefit transfer scheme to the manufacturing sector, with separate salary and Employees’ Provident Fund transfers directly to the accounts of employers and employees, is a wonderful move. This will accelerate employment generation in India. Overall, this budget has focused on 9 key priorities of Viksit Bharat and we are proud to witness it."
Rajesh Rokde, Vice Chairman, GJC : We admire Finance Minister Nirmala Sitharaman ji’s Union Budget presented today, which stands out in several ways. Notably, after persistent efforts from GJC, the government has reduced customs duties on gold and silver to 6 % and on platinum to 6.4%. This move will provide significant relief to consumers who have been investing in alternative assets, encouraging them to return to gold investments. We are confident that household investment and savings in India will see an increase in the coming days.
Additionally, the expansion of working capital loans for SMEs and MSMEs in the jewelry sector will provide a much-needed boost. The increase in the personal income tax exemption limit will also benefit consumers and promote household savings.
Overall, the Union Budget 2024 is commendable.
Sachin Jain, Regional CEO, India, World Gold Council: This budget has announced a slew of measures to boost overall economic growth of India. For the gold industry, the reduction in basic customs duty on gold from 10% to 5% and Agriculture Infrastructure & Development Cess (AIDC) from 5% to 1% will boost the overall competitiveness of the domestic jewellery industry. It will effectively reduce the overall taxes on gold from around 18.5% (including GST) to 9%. It’s a massive step in right direction, as it will reduce the incentives for smuggling of gold. It will create a level playing field for honest industry stakeholders. Gold prices will also correct locally, thereby giving a boost to retail gold demand – another incentive to the Indian gold industry.
DR CHETAN KUMAR MEHTA, President- Jewellery Division, India-IBJA, President- JAB, CMD- Laxmi Diamonds, Bengaluru : The significant reduction in import duties for gold, silver to 6%, and platinum to 6.4% is a pivotal move which will make precious metals more accessible, driving increased demand, increase industry's global competitiveness and will play a major role in eradicating cases of gold entering through illegal channels.
Excluding the diamond sector from 2% equalization levy on rough diamond sales and introduction of the Safe Harbour Rule on sale of rough diamonds at SNZs are welcome moves.
Vaishali Banerjee, MD, India - Platinum Guild International : We welcome and thank the Government for their decision to lower the custom duty on platinum to 6.4%. This will enable and encourage the platinum jewellery industry to develop and grow in both the domestic and export markets by significantly enhancing platinum's accessibility and appeal. We anticipate that this reduction will catalyse the already growing demand, increase platinum jewellery footprint, generate employment and support a sustainable future growth.
Amit Pratihari, MD, De Beers Forevermark : The GJ sector has made significant contributions to India’s GDP, and we appreciate the announcements made in the Union Budget for this sector. The proposed reduction in customs duties to 6% on gold and silver, and 6.5% on platinum, will enhance sales by making these precious metals more affordable. The implementation of safe harbor rates for the diamond-cutting industry, for foreign mining companies selling rough diamonds in India, will stimulate growth, boost consumer spending, and increase global competitiveness.
Furthermore, the reduction of TDS from 1% to 0.1% for e-commerce operators will substantially support the industry's expansion. These new measures will not only strengthen the valued investment of Indian households in diamonds but also add to their emotional significance.
Surendra Mehta, National Secretary- IBJA : The overall reduction in duty by 9% in silver and gold from 15% will reduce price of gold by appx 5,90,000/- per kg
and silver prices by Rs.7600/- per kg. It's a boon to
the industry and to customers of gold and silver .
We welcome government decision as this would
curb illegal import
Colin Shah ,MD, Kama Jewelry : The reduction of customs duty on gold & silver to 6% and platinum to 6.4% is a welcome move by the Finance Minister. This will play a major role in bringing down the cases of smuggling and provide cost benefits to the consumers in the country. Introduction of Credit Guarantee Scheme in MSME Sector for collateral-free loans will help in empowering the MSME sector.
FMs proposal to withdraw the 2% equalisation levy will assist in providing relief to digital companies, thereby giving a major boost to online buying. Lastly, acceptance of Safe Harbour Rule for the sale of rough diamonds in Special Notified Zones (SNZs) is another welcome step which will help in brining transparency in trade activities in the SNZs.
MP Ahammed, Chairman, Malabar Group : The reduction in import duty on gold has been a long-standing demand for gold retailers, and we are extremely grateful to the Union Finance Minister for addressing this issue in today’s Union Budget by reducing the duty from 15% (including cess) to 6% . This move not only relieves consumers who have eagerly awaited this announcement but is also expected to boost gold demand in the country and create jobs for artisans.
High import duty often leads to increased smuggling of gold through illegal routes, which hampers the growth of the organized retail gold trade and results in revenue losses for the government. It is expected that the duty reduction will drastically cut down gold smuggling , thereby curbing illegal trade and enhancing tax revenues. This reduction benefits organized retail jewellers, consumers, and the government, making it a positive development for all parties involved.
Dr. Saurabh Gadgil, Chairman and MD, PNG Jewellers : We are delighted to learn about the significant reduction in import duties for Gold, Silver to 6%, and Platinum to 6.4%. This decision, which aligns with the industry's long-standing request, is expected to have a positive impact on the organization and growth of the industry. By lowering import duties, we anticipate an increase in gold consumption and a moderation in gold prices, which have recently reached record highs.
Furthermore, this move is not only beneficial for the industry but also provides relief to consumers. It represents a substantial step towards enhancing industry transparency and curbing illegal smuggling activities. We wholeheartedly welcome this decision and look forward to its positive effects on the industry and the market.
Ramesh Kalyanaraman , Executive Director, Kalyan Jewellers : We welcome the 2024 Budget's progressive measures to reduce customs duties on gold, silver, and platinum. These changes, coupled with the government's commitment to enhancing domestic value addition and craftsmanship, are poised to significantly benefit the jewellery industry, further contributing to the sector’s growth.
The new tax regime, with its focus on increased disposable income will boost demand for jewellery as consumers will invest in asset creation.
Kalyan Jewellers looks forward to leveraging these positive changes to further enhance the quality and global competitiveness of the organised Indian jewellery sector, contributing to the industry's growth and India's continued economic prosperity.
Mitesh Khimji, Director, Khimji Jewellers : We express our sincere appreciation for the favourable decision made by the esteemed Prime Minister and the Finance Minister to reduce the import duty on Gold, Silver to 6% and Platinum to 6.4%. This advantageous move offers substantial relief to the gems and jewellery sector. It will further augment the industry's global competitiveness and effectively eradicate the parallel grey market.
Sumit Dassani, Partner at Dassani Brothers :The latest Union Budget brings promising changes for the jewelry sector, and as Dassani Brothers, we are particularly enthusiastic about the reduction in customs duty on gold and silver to 6%. This pivotal move will make these precious metals more accessible, driving increased demand and allowing us to offer our clients even greater value.
Lower costs will enhance our ability to provide competitive pricing while continuing to deliver intricate and magnificent adornments that celebrate life’s key moments.
This development not only promises to boost our sales but also reinforces our dedication to building lasting relationships with our clients.
We look forward to leveraging these opportunities to strengthen our position as a symbol of luxury and creativity in the jewellery industry.
Dr.Pratap Madhukar Kamath , MD- Abaran Timeless Jewellery Pvt Ltd. : Extremely happy on the duty cut.
We would like to express our gratitude to the Finance Minister and her team for this significant reduction in custom
duty on precious metals and dore bars. This will help the domestic industry in a big way.
Deepak Soni ,Kartikey Bullion,East India Head- IBJA : We welcome the government's decision to reduce customs duty on gold and silver. This move will undoubtedly boost the demand of Gold and Silver in domestic market. With lower duties, Jeweller can offer competitive pricing, making gold and silver more accessible and affordable to all consumer segments. We're excited as this move will offer great opportunities in business; industry has been waiting for such move for a long time. We look forward to increased demand for these precious metals.
Piyush Gupta, Director- PP Jewellers by Pawan Gupta : This reduction is a significant move that will not only make these precious metals more affordable for consumers but also provide a great boost to the jewellery industry. Lower customs duties mean reduced costs for raw materials, enabling jewellers to offer more competitive prices and innovative designs to our customers. We expect this reduction to help in stimulating demand, promoting higher sales, and ultimately supporting the growth of the entire jewellery sector.
Leshna Shah,Founder- Irasva Fine Jewellery : Reduction of customs duty on gold to 6% will help in making gold more affordable, which will likely stimulate consumer demand and drive growth in the sector. Lower customs duties will also encourage transparency in the gold trade, and promote legitimate business practices.
Additionally, this reduction can positively impact our artisans and craftsmen by increasing production volumes and providing more employment opportunities.
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