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All India Gems and Jewellery Federation (GJF) has hailed the government's move to abolish 80:20 rule for gold imports and asked for creation of a comprehensive gold policy along with curbing smuggling from neighbouring countries by reducing gold import duties.
The move to abolish 80:20 rule comes close on the heels of GJF's letter to Prime Minister Narendra Modi last week and persistent efforts with key policymakers.
It also comes as a relief to all those people who are buying gold and jewellery during the wedding season, a statement issued here said.
The government introduced the so-called 80:20 import rule -- tying imports to exports of jewellery -- last year to bring down inbound shipments and narrow the current account deficit that had hit a record.
GJF, the national nodal and largest single trade body in India for the promotion and growth of trade, has proposed unlocking of idle gold in the country to the tune of 1,000-1,500 tonnes within 3 years through Rashtriya Swarn Nivesh to reduce CAD further.
It has also sought formation of a nodal ministry to represent it.
GJF has also sought clarity on whether circulars prior to August 14, 2013, including those on restrictions on import on a consignment basis (issued in May 2013) still prevail, and if they are, then the latest circular is more restrictive instead of being beneficial to the trade, it said.
GJF chairman Haresh Soni said: "We thank the Prime Minister for giving a fresh lease of life to gems and jewellery sector, which has been gasping for breath.
"We reiterate our support to the government for its various initiatives to remove trade distortions while stimulating growth in the economy and overall development. GJF also recognises its responsibility of self-regulation."
"We urge the government to initiate the process of creating a comprehensive gold policy. We are hopeful that gold supply will be better now and lakhs of craftsmen will be able to get job work. However, we urge the government to curb smuggling from neighbouring countries by reducing gold import duties.
"Considering that the gems & jewellery sector has been going through tough times, GJF also sought the formation of a nodal ministry to represent its sad plight and sorry state.
"GJF has proposed a national debate on this matter because gold is part and parcel of the common man's life since thousands of years," Soni said.
