Editor’s Note
The Indian jewelry industry is calling for reduced import duties on key raw materials like gold, silver, and gemstones. As the article outlines, proponents argue that lower tariffs would cut production costs, boost export competitiveness, and allow domestic manufacturers to better rival global players.
One of the biggest demands of this industry is to reduce import duties on raw materials such as gold, silver, platinum, and colored gemstones. India is heavily dependent on imports for these materials. High duties increase production costs. This reduces the appeal of Indian jewelry in global markets. Reducing import duties will lead to cost savings. They say export value will improve and Indian manufacturers will get a chance to compete with global companies.
Another important demand is to simplify the customs procedure. Exporters face difficulties due to slow clearance and paperwork. Faster customs clearance, risk-based inspections, and the use of digital documentation can reduce logistics costs. This will improve delivery times. Streamlined customs procedures are essential for facilitating trade and achieving India’s goal of becoming a global jewelry manufacturing hub.
GST remains a major concern at the local level. The industry is demanding a reduction in GST on jewelry from the current 3 percent to 1-1.25 percent. A lower GST rate will reduce costs and encourage formal purchases.
The industry expects controlled EMI options for even small purchases of gold jewelry. Such schemes will make consumers feel comfortable despite higher prices. At the same time, transparency and consumer protection will also be ensured. Convenient financing options are expected to boost sustained demand.
It is estimated that there is about 24,000 tons of gold in Indian households. The exchange of old gold has become a major part of jewelry sales. The industry wants rules that can bring more idle gold into the formal economy. They say mobilizing this gold can reduce import dependence and promote recycling. They say long-term economic value can be achieved from this.
Skill development and infrastructure development are also important on the industry’s agenda. It is said that a targeted training program for artisans is needed to improve productivity and quality. Better export cluster infrastructure and incentives for technology adoption are required.
The industry is pushing for the early implementation of the Tourist GST Refund Scheme at major airports. This will allow foreign tourists to claim GST refunds on jewelry purchases. This will encourage them to buy luxury jewelry in India itself instead of foreign markets.
