The All India Gems and Jewellery Trade Federation (GJF), has asked the Government to allow import of gold under OGL, a top GJF official said.
In a significant development, the All India Gems and Jewellery Trade Federation and the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce, at its meeting here agreed to work together to improve the jewellery industry on various fronts.
In a day-long meeting in Mumbai chaired by Chairman, C Vinod Hayagriv and immediate past Chairman, Ashok Minawala, GJF presented a detailed plan for the modernisation and standardisation of industry.
The All India Gem and Jewellery Trade Federation is planning a growth of 17 per cent in the next three years from the eight per cent at present. For us to succeed, we need the support of the Government. The industry is highly fragmented and these are times when we need to identify the trade as an industry. Modernisation is required which will happen in the form of education, GJF Chairman's C Vinod Hayagriv, said.
Hayagriv said that the steps if implemented by the Government, could largely contribute to making the industry more streamlined and focused and make India a true hub of jewellery in the world replacing the Middle-East and overtaking China.
"The jewellery industry will probably see the biggest transformation in the next few years," Department of Industrial Policy and Promotions, Ministry of Commerce Secretary, Ajay Shankar, said.
GJF has stated that VAT should be rationalised and setting up of refineries in India by private businesses should be allowed.
The delegation also suggested removal of excise duty on branded and unbranded jewellery and reduction of duties on consumables and machinery.
Minawala presented the major suggestions that could uplift and reform the sector. One major step was to build jewellery parks which would aid in fostering better working conditions, training facilities, quality and hallmarking facilities, exhibition space, accommodation facilities for travelling personnel, designing services and safekeeping facilities, among others, all in one facility.
Recognising that the core of the business consists of craftsmen, he mentioned that assistance should be provided to them for better housing through use of subsidy options.
On the financial front, the Government should provide low-cost and higher funding for jewellers, allow a presumptive tax on turnover as an option in lieu of normal income tax and increase mandatory audit limits to Rs 2-crore.
GJF said that a major difference can be made if the use 'Incredible India' logo is allowed by the jewellery industry/GJF members for promotional programmes.
