Govt may announce incentives for gold jewellery exporters

Seeking to promote exports, the government is considering to extend certain incentives such as making available duty-free gold in smaller denominations to jewellery exporters.
The measures were discussed in an inter-ministerial meeting chaired by Commerce Secretary Rita Teaotia yesterday, sources said.
Besides, steps like supply of duty-free gold under the replenishment scheme to the exporters, as an when needed, were also discussed in the meeting.
For gold jewellery exporters, paperwork may be reduced to promote ease of doing business in this area.
It was proposed that exporters may be allowed to ship jewellery on notional rate basis for the purpose of claiming incentives. However, they will have to tell the actual value within 180 days of the shipment.

The sources said that the jewellery is an important area to boost exports as India's share in the global market is small.

Due to wide differences in duty paid and duty refunded, exporters are shying away from tax refund scheme, they added.
An exporter said that the sector is reeling under the global economic slowdown.
Gems and jewellery export grew by just 4.6 per cent in March to USD 3.61 billion.
Declining for 16th straight month in March, exports contracted by 5.47 per cent to USD 22.71 billion in March due to tepid global demand.