GJ Industry hails on the Union Budget!

Committed to pursuing artistic craft’s excellence 

Reaction of Gem & Jewellery (GJ) Industry and Trade on the Union Budget 2024-2025 that presented by Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman! 

1: 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.

We are committed to pursuing artistic excellence and technical perfection in our creations, and this policy change aligns perfectly with our mission. 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 jewelry industry."

2: 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 was one of the long-standing demands of the industry and coming up of this announcement especially at a time when the industry is already grappling with various challenges will certainly help the industry to march on the path to progress. 

This will play a major role in bringing down the cases of smuggling and provide cost benefits to the consumers in the country, which will provide a major fillip to the demand in the domestic market. This will also provide a big boost to FTAs, thereby creating a space for expanding the exports in the less explored overseas markets.  

Additionally, introduction of Credit Guarantee Scheme in MSME Sector for collateral-free loans will help in empowering the MSME sector. Setting up of E-Commerce and MSME hubs under Public Private Partnership (PPP) will play a key role in facilitating services pertaining to trade and exports.  

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 bringing transparency in trade activities in the SNZs.”  

3: 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.”

4: Amit Pratihari, MD, De Beers Forevermark: 

“The Gems and Jewellery 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,”