Hyderabad, July 17 (FN Bureau) All India Gem & Jewellery Domestic Council (GJC) on Monday said it welcomed the Union government’s decision to impose restrictions on gold imports and stands united with the Indian jewellery industry in its efforts to nurture self-sufficiency and preserve the rich heritage of Indian jewellery craftsmanship. Aiming to strengthen the Indian jewellery industry by curbing the disproportionate import of bullion compared to jewellery and fostering local manufacturing capabilities, the Modi government has recently imposed new restrictions on gold imports, specifically targeting the import of gold jewellery from ASEAN and SouthEast Asia. In a release, GJC Chairman Saiyam Mehra, while highlighting the significant disparity between bullion and jewellery imports, stated, “India imports bullion to the tune of 600-800 tonnes per annum, which is substantially higher than jewellery.
India does not import gold jewellery through official sources due to a 25 per cent import duty. “The import duty on ASEAN countries was ‘zero’, which resulted in India’s import of gold jewellery to the tune of more than 3.5 tonnes valued at $112.09 million in April-May 2023, of which $76.28 million came from Indonesia. Now, the restriction will stop such imports and enable jewellery retailers to manufacture all gold ornaments locally”, he said. The previous practice of importing ornaments for melting in local refineries and selling bullion for higher profits due to duty differentials has raised concerns within the industry. This practice not only affects domestic revenue but also poses a significant threat to the livelihoods of 70-80 lakh (7-8 million) local artisans, Mehra said.
The GJC Chairman emphasized the urgent need to discourage the sale of bullion obtained from imported jewellery. He noted that such practices leave only liaisoning jobs for the local markets and pose a grave risk of rendering numerous local artisans jobless. GJC Vice Chairman Rajesh Rokde said “With the current change, jewellery imports from ASEAN countries have been restricted. Now, Indian jewellers can import gold jewellery only through the UAE under the CEPA agreement after paying the required import duty.” These measures are expected to bolster the growth of the Indian jewellery industry, empowering local manufacturers to produce a wide range of gold ornaments domestically, he added.