The gem and jewellery sector, which had expected a major relief from the Modi-led Government, is disappointed as the Budget presented by Finance Minister Arun Jaitley ignored the sector completely.

Haresh Soni, Chairman, All Indian Gems and Jewellery Trade Federation, said the entire industry was waiting for a positive turn of events but was let down by the Government.

The industry, which is reeling due to a slowdown in demand, had sought reduction in import duty on gold to six per cent from 10 per cent and also the abolition of the stringent 80:20 norms.

Restrictive policies

“Despite several representations by the Federation to the Ministry highlighting the hardship faced due to restrictive policy measures, the Finance Minister has ignored the plight of the trade,” he said.

Parallel economy

The 80:20 rule was the biggest impediment for smooth operation of imports and development of premium on gold as the export relation to imports had no relevance and had built a big parallel economy.

“We would urge the Government to end the ‘Gold Control Raj’ and rescue domestic gems and jewellery trade from parallel economy and black marketing by abolishing 80:20 rule and reducing import duty on gold” said Soni.

Diamond duty

Vipul Shah, Chairman, Gem and Jewellery Export Promotion Council of India, said the rationalisation of import duty on processed diamonds to 2.5 per cent would help the domestic manufacturing sector.