GJF seeks government intervention in bank lendings

The national body for jewellery trade, the All India Gems & JewelleryTrade Federation (GJF), has asked the government to instruct banks to give low-cost capital to the sector at a rate 8 to 10 per cent and also provide gold and raw materials on low-cost loan basis to gems and jewellery trade at an interest rate of 2.5 to 3.5 per cent per annum.

“GJF wants the government to instruct banks to provide gold and rawmaterial on low cost loan basis to gems and jewellery trade at an interest rate of 2.5 to 3.5 per cent per annum. The government should also persuade them to give low-cost capital to the sector at a rate of 8 to 10 per cent, which is currently 12 to 15 per cent,” said Vinod Hayagriv, Chairman of GJF.

In its wishlist for the Budget, the federation has demanded the government to bestow council status to it so that the body can be a part of government discussions and decision making. “We have also asked to abolish wealth tax on gems and jewellery, as the amount is very small,” he said. GJF also requested the Centre to allocate more funds through the National Skill Development Council to increase employment opportunities and skilled labour in the field.

“We have demanded the rolling out goods and services tax (GST) soon, as the difference in value added tax (VAT) of different states is causing difficulty for the movement of goods from one state to other,” Hayagriv added. GJF has more than 10,000 members and represents3,00,000 jewellers across country.

“Irregularities in this sector need to be minimised to maximize profit in the industry. Hence, mandatory hallmarking is vital and we will help the government in implementing it across India,” he said.