India’s gemstone and jewellery exports are expecting a 10 to 15 percent drop this year due to the 10 percent import duty on gold, The Times of India reported recently.
The country exported $6.35 billion worth of gold jewellery from April 2013 to February 2014, a 45.56 percent decrease from the $11.67 billion recorded during the same period in the previous year, the report said, citing figures released by the Gems & Jewellery Export Promotion Council (GJEPC).
The 10 percent import duty on gold was introduced by the government in a bid to reduce its current account deficit and curb smuggling, the report said. The GJEPC is, however, asking the government to lower the tax to two percent to help boost India’s finished jewellery exports, it added.
Polished diamond exports, nonetheless, rose 20 percent year on year to $18 billion during the April 2013-February 2014 period, it added.
India exported $718.36 million worth of gold jewellery in February this year, a one percent increase over the same month in 2013, the report added