The export-oriented, manpower-intensive gems and jewellery sector is likely to get a boost from the measures announced by Commerce and Industry Minister Anand Sharma through the Foreign Trade Policy.
The government has announced a duty drawback on gold jewellery exports in case the yellow metal was imported independently by jewellery makers. The drawback will neutralise duty incidence on exports of all gold jewellery items which will provide a fillip to exporters. India’s gold jewellery is largely exported to West Asia, the US, Japan and other Asian and European countries.
Vasant Mehta, chairman of the Gems and Jewellery Exports Promotion Council (GJEPC), has termed the move significant, saying it will encourage jewellery exporters to bring more raw materials like gold for exports after value addition.
There is a duty of Rs 250 per 10 gram if the gold is imported directly. Duty is waived for government-nominated agencies.
To promote export of gems and jewellery products, the value limits of personal carriage have been increased from $2 million to $5 million.
