Jewellers and bullion dealers want the Union Finance Minister Nirmala Sitharaman to prepare a mechanism to help the middle class in India to buy jewellery through EMI in the view of skyrocketing gold prices, allocate funds for upskilling the artisans and identify a single regulator for the gold market in the upcoming Budget that will be tabled on February 1.
Since this industry is regulated by SEBI, RBI, DGFT, Ministry of Finance and Ministry of Commerce market players want a single regulator now. Moreover, bullion refiners have been working on a paper-thin margin of 0.65% for the last few years. This margin should be increased by decreasing the import duty on gold dore (impure gold) imports, said Prithviraj Kothari, president of India Bullion & Jewellers Association (IBJA), an apex trade body.
Suvankar Sen, MD & CEO of listed firm Senco Gold and Diamonds said that the jewellery industry has been providing jobs and employment to India's youth and skilled artisans. “We hope to allocate funds for skilling of gold artisans, prepare a mechanism that middle-class customers can buy jewellery through EMI, reduce the tax rates and bring in liquidity in the economy through infrastructural spending for jewellery and other sectors.”
Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers said that the upcoming Budget 2025 presents an opportunity to build on this momentum through thoughtful policies and tax reforms for the common man, thereby stimulating demand and consumption.
“Initiatives like further reductions in import duties, and strengthening gold monetisation schemes, can enhance efficiency and boost demand further,” Gadgil said.
Additionally, the success of recent jewellery industry IPOs underscores the sector’s growing compliance and credibility, opening doors to capital markets and encouraging more players to adopt organised practices. “The industry’s export potential, contributing 5% to India’s total exports, can be further harnessed with policies that optimise gold circulation and incentivise sustainable practices to boost jewellery exports,” he added.
Source Name : Economic Times