FM to table Budget 2018 today!
Multiple jewellery parks likely to be focused!
India is one of the largest exporters of gems and jewellery. The industry is found to play a vital role in the contribution to total foreign reserves of the country. It is one of the fastest growing sectors and is export oriented and labour intensive.
As per the 68th round of NSSO, the sector employed 20.8 lakh persons in 2011-12. Exports of the sector have risen from 0.7 per cent in 2014-15 to 12.8 per cent in 2016-17. The import duty on goldsmith tools is 30.15 per cent. Duty drawback rate on gold jewellery is 246.5 per gram of gold content in the jewellery.
In view of the tremendous scope in gems and jewellery sector, following programs may be taken up for promoting employment in this sector:
1: Public Private Partnership models could be explored for training in jewellery designing. The jewellery training institutes may be affiliated with the Gems and Jewellery Sector Skill Council.
2: Setting up infrastructure such as refineries, hallmarking centres etc., to promote jewellery manufacturing in rural areas.
3: Creation of multiple jewellery parks (accommodating manufacturers, shared services, testing, banking, logistic support etc.) so as to promote production in a more organized environment.
In a general vies, Vaibhav Saraf, Director, Aisshpra Gems & Jewels says: “We are looking forward to a few amendments in the policies in the new budget including a reduction in import duty on gold bullion to 4%, increase of 50K in income tax slab for individuals and last but not the least, ease in compliance of tax filing”
Sunay Gandhi, Founder and CEO Pristine Fire, says, the jewellery industry has a significant role to play in the country’s overall economy. We are looking for a positive outcome from the budget. We hope that the Budget 2018 is industry friendly. Overall, an impactful budget will be the one that takes into consideration several important factors that impact consumers and retailers such as individual taxes, import and export duty etc.
Firstly, we are looking forward to reduction of tax on individuals to increase consumer spending. Tax rate cuts may encourage individuals to work, save, and invest. Secondly, Government spending must be streamlined further reducing wasteful expenditure. Federal spending is taking an increasing share of the productive resources in the economy.
Lower government spending frees economic resources for investment in the private sector, which improves consumer wealth. Finally, the central government should increase budgetary allocation for infrastructure and industrial growth, to boost employment opportunities.
Key: Budget 2018, Jewellery park, jewellery Infrastructure
