Gold Import Duty Hike: GJEPC Urges for Sustainable Solutions

The Gem & Jewellery Export Promotion Council criticizes the recent hike in gold import duty, asserting it inflates prices without reducing imports. Higher duties incite smuggling and strain exporter finances, particularly affecting MSMEs. The council advocates for dialogue with the government and presents alternatives like promoting different jewellery and revitalizing the Gold Monetisation Scheme.

The Gem & Jewellery Export Promotion Council has taken a firm stance against the government's decision to increase gold import duties. The council asserts that such measures do not effectively curb imports but instead lead to inflation in gold prices.

According to the council, import duties escalate smuggling and add to exporters' costs, particularly affecting MSMEs that make up a significant portion of their membership. Currently, exporters are dealing with costly bank guarantees, which severely impact their working capital.

In reaction, the council recommends several measures to the government, which include fostering the use of lower-caratage gold to cut imports, encouraging gold exchange programs, and rejuvenating the Gold Monetisation Scheme to harness India’s vast household gold reserves.