Expect an announcement in terms of Gold Board because there is no ministry representing the gold and jewellery sector, said Sanjeev Agarwal, CEO, Gitanjali Export.
NITI Aayog Committee has made recommendation to the Department of Economic Affairs to bring the import duty on gold to zero from the current 10 percent. The committee has made a very comprehensive report of 250 pages with regards to sector.
The committee is also said to have recommended reducing the GST on gold from 3 to 1 percent.
On back of this news, the jewellery companies have been in focus.
Discussing the above news, Sanjeev Agarwal, CEO, Gitanjali Export Corporation said one has to look at the report holistically because it is first policy paper come out by the government on gold sector.
Gold is an Rs 5.3 lakh crore in industry that provided direct employment to more than 50 lakh people. Gold sector is the third largest employer in India, says Agarwal.
Till date there never has been a comprehensive policy covering every aspect of the industry and this report could be a start towards that.
However, it is not important to look at the import duty cuts and GST cuts but one has to look at the reasoning behind this policy recommendations, says Agarwal, adding that it is a simple reasoning where the intent is to put gold at part with the diamond industry.
The policy talks about all enabling factors to make sure potentially any small retailer, manufacturer anywhere in India can be an exporter, says Agarwal.From the Budget 2018, he expects an announcement in terms of Gold Board because there is no ministry representing the gold and jewellery sector.