While Indian diamond exporters get some relief, Jewelry industry disappointed

Despite the reduction in India’s Current Account Deficit (CAD) from 0.9% to 0.2%, the government refrained from making any changes to the import duty structure of gold, in the recently announced budget. Though the deficit in export-import was curtailed from $190.3 billion in 2012-13 to $137.5 billion and gems & jewelry industry sought relaxation in the 80/20 rule and reduction of duty from 10% for gold imports, it seems that the Indian government is still not sure about its control over CAD leading to huge disappointment in the Jewelry industry.

However, the government brought some relief to the Diamond exporters by rationalizing the import duty of broken diamonds, withdrawal of import duty on pre forms of semi-precious and precious stones and rationalizing import duty on processed diamonds to 2.5%.

 

Source: Sangeetha, G. (2014) “Lower CAD fails to cheer gems and jewellery industry”, Financial Chronicle, mydigitalfc.com

(http://www.mydigitalfc.com/news/lower-cad-fails-cheer-gems-and-jewellery-industry-320)

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