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| Gems, jewellery sector seeks zero duty on gold imports |
| Press Trust Of India / Mumbai Feb 19, 2010, 00:08 IST |
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With the Budget just about a week away, the gems and jewellery industry has lined up its wish list, which includes allowing the industry to import gold under open general license (OGL) and zero duty on gold imports.
“The recession is receding and new hopes for the gems and jewellery sector are arising. The government should allow gold imports under OGL by any member of the All India Gems and Jewellery Development Council (the nodal official quasi government body) having a certain annual revenue-earning or greater than Rs 50 crore,” All India Gems & Jewellery Trade Federation’s Chairman, C Vinod Hayagriv, said here.
Gold imports under OGL will allow jewellers and jewellery manufacturers to import directly and lower costs and make a better return on high investments, Hayagriv said.
The government should also introduce a zero duty on gold imports so as shift world trade to India. Indian importers will then import gold, scrap gold, set up refineries, refine the gold and supply to domestic trade and re-export, he said.
There is an opportunity to make a brand ‘India Bar’ gold that the world will consume similar to Emirates or Swiss bars on Thursday. With the collapse of Dubai, if India does not act swiftly, China will snatch the opportunity to move world trade towards it, Hayagriv said.
Lastly, if the duty is not bought down, the GJF wants that the Government allocate 25 per cent of the duty so collected to be ploughed back to improve the trade, Hayagriv said.
GJF also asked for an allocation of Rs 350-crore for setting up jewellery parks to rehabilitate craftsmen from city centres and unhygienic buildings to scientifically-planned buildings and parks with good manufacturing, testing, hallmarking, bullion banks, safekeeping facilities and shared machine shops, among others.
It has also demanded an allocation of Rs 75 crore for a national festival to garner world-wide publicity for India’s jewellery trade. GJF has plans to showcase Indian talent to the world, thereby improving the image and tourism for the country.
It has also urged the Government to allow ID cards in the form of smart cards for easy and safe transit of jewellery across country. Currently, there is far too much harassment, bribery and hardships faced by the trade in transporting the precious cargo in India. The Centre needs to, without fail, recognize GJF identity cards that will reduce this completely, Hayagriv said.
Finally, it has demanded a reduction in bank (interest) rates for working capital at a sub-8 per cent level from the existing 11-12 per cent per annum. It also called for a reduction in bank interest rates for gold loans to 2.5 per cent from the existing 4.5 per cent per annum.
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