Indian gems and jewellery trade is extremely disappointed with the RBI’s first bi-monthly monetary police announcement of the new fiscal year, wherein it is learnt to have ignored the plight of the trade, reports The Times of India.
The All India Gems and Jewellery Trade Federation (GJF) has said that the trade was expected some relaxation as per the recent announcement by the Finance Minister as the new buying season is going to start. The trade was expected an immediate end to the gold control raj and the abolition of the 80:20 formula for gold import introduced by the government in July-2013.
However, the RBI seems to have failed to consider the long pending demand of the trade in its bi-monthly monetary policy announcement, said the GJF.
Haresh Soni, chairman, GJF said, “It is our demand that the gold import duty should be reduced in the range of 2-4 per cent from the current 10 per cent. Gold should not be single handedly held responsible for the current account deficit (CAD) and now that it is under control, the RBI should have done away with the unnecessary controls in its bi-monthly monetary policy”
Ashok Minawala, director, GJF said, “It is a situation of absolute lack of concern for the misery that our unlucky industry is going through that even after 10 months of bringing gold controls, the RBI and the Indian government sit tight. Even if the CAD is positive and balance of payments is okay, there is no need for gold control.