However, they were disappointed that there was no announcement in reduction of import duty on bullion.
"The government has made excellent reforms for agriculture and rural sector, which is one of the highest contributors to the GDP. These reforms will empower the rural consumer through improved earnings. This will in turn help the jewellery sales in rural sector," All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal said.
He added that the proposed comprehensive Gold Policy, Gold Spot Exchange and Gold Deposit Account will also be very beneficial for the industry.
GJF former chairman Sreedhar GV said, it is a welcome budget for the entire gems and jewellery sector.
Also Read
"The government has been very assertive on the demands from the jewellery sector and have heard our voices. Gold monetisation scheme was a request, which the industry demanded and we are happy that the government will soon revamp the existing gold monetisation scheme," he added.
"The establishment of a regulated gold exchanges is exceptionally positive towards making gold a mainstream national value-added asset. A stable policy environment and a fair and effective trading market will bring much needed transparency and stability," he added.
Gem and Jewellery Export Promotion Council (GJEPC) Chairman Pramod Agarwal said the proposal to cut corporate tax of companies with annual revenues of up to Rs 250 crore to 25 per cent will benefit the sector but this measure should be also made applicable to all gems and jewellery exporters.
However, he said, the increase in customs duty of cut and polished coloured gemstones (including diamonds) from 2.5 per cent to 5 per cent will hamper India's chances of becoming an international diamond trading hub.
"This move doesn't provide India a level playing field vis-a-vis other peers such as Belgium, Dubai and Israel. It will also have a negative impact on market share in US business US, which has been growing fast," he added.
Meanwhile, Indian Bullion and Jewellers Association Vice President Saurabh Gadgil said, "We are hoping this budget will bring about the required confidence in the economy and benefit the industry in the long run," he added.
Disclaimer: No Business Standard Journalist was involved in creation of this content