On Monday the export of gold jewelry or articles has been banned by the Govt above purity of 22 carats. on Monday the Directorate General of Foreign Trade notified that The Foreign Trade Policy 2015-20 has been revised to allow the trade of silver jewelry (plain or studded) and content containing silver of eight carats and above, up to a maximum limit of 22 carats only from domestic tariff area and trade focused models (EOU) or any such privileged facilities.”
From jewelry manufacturers, the government is getting mixed reactions about this decision. While some experience it’s going to have an important effect, others experience it will not impact much as the need for pure gold jewelry is very less all over the world.
The National Secretary of the India Bullion and Jewellers Association (IBJA), Surendra Mehta told that He had been written to the Secretary of state for Finance about eight months ago, featuring the circular stumbling of money and medallion imports and their following trade after an acceptable value addition. For value addition in 23 and 24-carat gold jewelry and medallions through imported gold coins, there is hardly any space. The round tripping of gold engaged many jewelers and the government’s current decision would restrict this.
As per industry estimation, every year about 170 tonnes of jewelry and medallions made of or studded with, gold is exported. These export figures of 24-carat gold items are about 15%.
Major producers of gold think that on nil duty the need was to ban the import of gold and not the export. Under the Free trade agreement, the nil duty gold comes in from South Korea. The reduction in foreign exchange earnings and to reduce employment in jewelry fabrication, this export will lead only.
By Indian Bullion dealers over two tonnes of gold jewelry and medallions have been bought at zero duty from South Korea, said by trade sources. Mainly to Dubai, China, Italy, the United States and the European Union, Indian jewelers were selling pure gold.
As the demand for pure gold jewelry and items is very less in international markets, so this decision is not going to impact the industry, said by A senior official from Gems and Jewellery Export Promotion Council (GJEPC). during 2016-17, gold medallions and coins export of India was $5,258.96 million and in 2015-16 increased by 2.85% and reached to $5,408.71 million, according to data from GJEPC.