The jewelry industry is looking forward to the upcoming interim budget with hopes that it will give the business fresh impetus for growth. Gold imports were down by 15% till July this fiscal.
Jewelers like Shreyansh Kapoor, Vice President of Kashi Jewellers hope that the government will halve the import duties to reduce final cost and boost overall consumption. Also, the higher import duty on gold has given rise to a parallel grey market, which is affecting the organized business. Kapoor outlines some of his expectations from the interim budget:
REDUCTION IN IMPORT DUTIES
We are hoping for a positive budget as for the very first time the government has created a National Council to take the gems and jewelry sector forward. We are looking forward to reduction in import duties, bringing it down from 10% to around 4% to 5%.
The government should encourage manufacturing and exports by creating more SEZs and by providing more skill development centers. Special benefits should be provided to manufacturers so they are inspired to hire more skilled labor. With more skilled talent on board, jewelers can create quality work, which can be exported and will earn the country precious foreign exchange.
EASE OF BUSINESS
We expect a reduction in the number of taxes for doing business, like corporate tax, partnership tax, etc. It could encourage jewelry retailers by relaxing credit norms for working capital requirements. This would provide great relief for the business.