Duty cut cheers jewellery sector

The Rs 60,000 crore gems and jewellery sector has received a surprise package from the finance minister in his budget, by way of exemption from customs duty on all rough coloured gem stones and a reduction on the customs duty of platinum from Rs 550 per 10 gram to Rs 200/10g.

These gemstones, including rubies, emeralds, and sapphires, were earlier allowed to be imported under the licensing scheme. Traders and exporters welcomed the move.

"India accounts for 92 per cent of the world's cut diamonds, and is one of the leading countries for cut gem stones. The reduction in duty will definitely benefit the local consumers of jewellery. Besides, there is already a boom in the retail jewellery market and the demand for gem studded jewellery is on the rise," said R K Nagarkar, general manager, Tribhovandas Bhimji Zaveri.

Currently diamonds could be imported at 5 per cent duty under the licensing scheme.

The reduction of the duty on platinum had brought platinum at par with gold. The duty on both now stood reduced at Rs 220 per 10 gram, brought down in phases from Rs 400/10g earlier. It was widely felt that the move would help the industry become more competitive.

"The reduction in duty will prove useful for Indian craftsmen to improve their know-how. India is already skilled in diamond studded gold jewellery. Now, more people can opt for platinum. In fact, the demand for platinum jewellery is on the rise in India. It will also help boost exports," said Sanjay Kothari, chairman of the Gem and Jewellery Export Promotion Council (GJEPC).

Platinum jewellery has a wide market in China, Japan and in Europe.