Union Budget 2016 disappoints gems and jewellery industry

Ishu Datwani, Founder, Anmol Jewellers commented%
Overall it’s a good budget with the right fiscal discipline, but as far as the Gem Jewellery industry is concerned, the 1 per cent excise duty is a regressive step which will be time consuming will only increase paperwork.
Pritesh Goyal, Director and Designer of SLG Jewellers Pvt. Ltd said

Apart from the new landing based price criterion noting was motivating for the Jewellery and Retail industry in the Union Budget 2016 – 2017. It is a lackluster move, not a glittering attempt. Although the proposal that shops will be given an option to remain open on all seven days is a positive move for retailers, which will help to increase sell. Moreover the proposal to make suitable changes in customs and excise duty rates to improve competitiveness and boost ‘Make In India’ will help several businesses like us to have easy trade in our sector.

Aditya Pethe, Partner, WHP Jewellers commented on the 1% excise duty on jewellery that as retailers we were hoping some exemptions or reduction of import duties so the sentiment of the market is obviously low. However, it is important that the government implements such new policies effectively as they have faced this challenge in the past.

Hardik Kapoor, Founder of Jewelsify.com- an online Jewelery Portal said
The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 6-7 per cent of the country’s GDP. One of the fastest growing sectors, it is extremely export oriented and labour intensive. It has potential to employ more over 2.5 million people in coming years. So for a sector that contributes to foreign exchange earnings of the country and plays major role in employment,the expectation have not been met. The gems and jewellery sector which was hoping for a cut in import duty on gold from 10 per cent to 2 per cent, 1 percent uniform GST the same has not been done.

The new subject of excise has come in existence in Budget 2016. We need to understand the implications of excise to where and how it comes into picture. Excise has the regulation control on the buying and selling of gold, so we need to understand the implications of it.

The result could have been a better mix for business and common man as businesses in turn provide employment. The government needed to implement some research and scrutiny in the matter and consider the easy access function. India has a shortage of gold exploiters and it is the major commodity for jewelry manufacturing. India’s closest competitor is China, which started gold mining about two decades ago, and is now the one of largest gold producers in the world. Also, the gold mining and extraction function would generate huge amount of employment, which would in turn support the domestic industry.

This budget at least for the jewellery industry is not Minimum Government but Maximum Governance.

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