BUDGET 2020: BLAH AT BEST!

The Gems and Jewellery industry was hopeful, expecting a few policy level changes, especially a reduction in import duty on both gold and diamonds. However, the Finance Ministry gave nothing to jewellers to keep them buoyant, instead a 0.5 per cent import duty has been imposed on coloured stones, which was earlier imported tax free

Countless meetings have been held and deliberations have been made, regarding ease of doing business in the gems and jewellery industry. The GJEPC has been in talks with the Ministry of Commerce & Industry for an overhaul of policies to facilitate better exports and to ensure more customers walk into the stores to buy jewellery domestically. However, on February 1, when Finance Minister Nirmala Sitharaman made announcements one after the other, the glimmer of hope amidst stakeholders faded. Not much was announced for the betterment of this sector that employs 4.64 million and contributes 7 per cent to the country’s GDP.

With a vision of uplifting the agricultural sector and doubling farmers’ income, FM said that an agricultural credit target of Rs 15 lakh crores would be set by 2021. These farming reforms will have a positive impact on the gems and jewellery industry, as an income growth amidst farmers will in turn lead them to invest in more gold.