Gold Duty Hike Alarms India's Gems and Jewellery Sector

The gems and jewellery industry, grappling with a 15% gold import duty hike, warns of increased smuggling and economic difficulties, especially for MSME manufacturers. The All India Gems and Jewellery Council and the Gem and Jewellery Export Promotion Council call for calm and constructive engagement with the government to navigate these challenging times.

The gems and jewellery industry in India is bracing for a challenging period following the government’s decision to hike the gold import duty to 15%. Exporters warn that this move could escalate smuggling activities and inflate prices within the grey market.

Micro, Small and Medium Enterprises (MSMEs), considered the backbone of the sector, are anticipated to bear the brunt due to an ongoing liquidity crunch. The All India Gems and Jewellery Council (GJC) leadership expressed concerns over potential market disruptions.

Despite the challenges, industry organizations emphasize the importance of maintaining business confidence and supporting national economic priorities, signaling their readiness to engage with policymakers to ensure the sector's growth and stability.