The Indian gem and jewellery industry has received a much-needed boost with the recent announcement by the government to reduce the export duty from the prevailing 18% to 10%. This move is expected to make exports from India more attractive and help in the growth of the industry. The decision has been hailed by the industry players and is being seen as a step towards making India a global leader in the gem and jewellery sector.
The export duty reduction will have a significant impact on the industry, which is one of the largest contributors to the country’s economy. With this move, the government has recognized the potential of the gem and jewellery sector and has taken a proactive step to facilitate its growth. The reduction in the export duty will not only benefit the industry but also have a positive impact on the overall economy of the country.
The gem and jewellery industry in India has been facing several challenges in the past few years. The high export duty was one of the major obstacles that hindered the growth of the industry. The industry has been demanding a reduction in the export duty for a long time, and the government’s decision has finally addressed their concerns. This move will provide a much-needed relief to the industry and will help in its expansion and modernization.
The reduction in the export duty will make Indian exports more competitive in the global market. India is known for its skilled artisans and craftsmen who produce exquisite jewellery pieces. However, the high export duty made it difficult for the industry to compete with other countries like China and Thailand, which have a lower export duty. With the export duty now reduced to 10%, Indian exports will become more attractive and will help in increasing the country’s share in the global market.
The gem and jewellery industry is a labor-intensive sector and provides employment opportunities to millions of people in the country. With the reduction in the export duty, the industry is expected to witness a surge in demand, which will create more job opportunities. This will not only benefit the industry but also contribute to the government’s goal of creating more employment opportunities in the country.
Apart from the export duty reduction, the government has also taken other measures to boost the gem and jewellery industry. The introduction of the Gold Monetization Scheme, the Gold Sovereign Bond Scheme, and the Indian Gold Coin have all been steps in the right direction. These initiatives have helped in formalizing the sector and making it more organized. The reduction in the export duty will complement these efforts and further strengthen the industry.
The reduction in the export duty will also have a positive impact on the country’s foreign exchange reserves. India is one of the largest importers of gold, and the reduction in the export duty will lead to an increase in exports, which will bring in more foreign currency. This will help in stabilizing the Indian rupee and will also reduce the country’s dependence on crude oil imports.
The gem and jewellery industry has been a major contributor to the country’s GDP, and the reduction in the export duty is expected to boost its growth even further. It will not only benefit the large-scale exporters but also the small and medium enterprises in the sector. The reduction in the export duty will also encourage more foreign investment in the industry, which will lead to its modernization and technology upgradation.
In conclusion, the reduction in the export duty on the gem and jewellery industry is a welcome move by the government. It will provide the much-needed impetus to the industry and help in its growth and development. The decision is a testament to the government’s commitment to making India a global leader in the gem and jewellery sector. With the export duty now reduced to 10%, Indian exports are set to become more competitive, and the industry is poised to reach new heights.
