Higher duties and levies are crimping the growth of gold industry in India, the second largest gold consuming nation, Baby George, Chief Executive Officer of Joyalukkas Group, has said. Currently, the sector pays an import duty of 15% on top of other local taxes and levies including the Agriculture, Infrastructure and Development Cess. Arguably, gold industry, perhaps, may be the single segment which is taxed at the highest bracket compared to other industries, he opined. “While the industry is optimistic about policies supporting the jewelry sector, it would be appreciated to revisit the duty structure on gold industry which will significantly enhance its contribution to national income from the current level of 1.3% of the GDP.” “Therefore, it is my earnest appeal to the State Finance Minister that he may revisit the aggregate tax incidence on gold in the forthcoming Budget, so that the industry could grow at a much faster clip not just in the domestic market but in the global market place as well,” he added.
“India has to meet almost the entire local demand through imports. As we eagerly anticipate the Union Budget 2024, the country envisions a transformative financial landscape that bolsters economic growth and stability.” “Such steps, I am sure, will be revenue neutral, if not revenue accretive, since the revenue lost by reducing taxes will be offset by higher revenue from exports and domestic sales as well.” EASF Small Finance Bank CEO K. Paul Thomas, said “In anticipation of the upcoming budget, it is imperative to prioritize allocation towards rural infrastructure and agriculture, while ensuring sustained support for Farmer Producer Organizations (FPOs) to enhance farmers’ welfare.” “Given the rapidly evolving landscape of the small finance sector and its pivotal role in ensuring financial inclusion, I anticipate that the Finance Minister will offer a comprehensive strategic vision in the upcoming budget, outlining the path forward for small finance banks and micro-lenders.”
The microfinance sector, having disbursed a substantial amount close to 2.18% of India’s real GDP, holds significant potential for economic revival and consumption. To facilitate its growth, the establishment of a guarantee fund for smaller MFIs and the creation of a congenial lending environment are crucial. However, it’s essential to address challenges such as indiscriminate loan waiver discussions during election times, which can disrupt repayment efficiency. Government intervention, possibly through legislation, to curb such practices and ensure loan waivers are granted on a case-to-case basis would safeguard the stability of the microfinance sector. Manappuram Finance ECO and MD V P Nandakumar said “I expect the Finance Minister to stick to fiscal discipline while supporting growth on a durable basis.” “To keep the growth momentum on track, the Finance Minister should ensure policy continuity. Therefore, I expect the forthcoming Budget to increase capital expenditure and infrastructure spend and take steps to enhance rural income and employment without straying away from the fiscal glide path,” he added.