Budget 2022: Small and domestic players to benefit from ease of e-commerce trading, says Ashish Pethe, Chairman of Gems & Jewellery Council

While those associated with the diamond trading business have welcomed the decision of the Finance Ministry of having reduced the customs duty on cut and polished diamonds and gemstones being reduced to 5 per cent, those associated with the gold and silver business stated that there was nothing for them in the budget this year. The industry experts however said that ease of procedures for e-commerce trading will support smaller and domestic players who wish to export their goods.

"To give a boost to the Gems and Jewellery sector, Customs duty on cut and polished diamonds and gemstones is being reduced to 5 per cent. Simply sawn diamond would attract nil customs duty. To facilitate export of jewellery through e-commerce, a simplified regulatory framework shall be implemented by June this year. To disincentivise import of undervalued imitation jewellery, the customs duty on imitation jewellery is being prescribed in a manner that a duty of at least Rs 400 per Kg is paid on its import," said Union Finance Minister Nirmala Sitharaman, while briefing on the Gems & Jewellery sector in the budget on Tuesday.

"I am satisfied with the budget. Import duty on diamond and pearls have been reduced and that will support the industry. We are thankful that they have not increased duty on gold. Emergency Credit Line Guarantee Scheme has been extended for one more year and Rs 50000 crores have been added so that will also help the gems and jewellery industry since most of the jewellers are in MSME sector. Compliances and procedures that are involved in exports through e-commerce platforms have been eased. It will support smaller and domestic players to explore exports and earn dollars for the country and increase their businesses. Even the smallest jeweller can put its goods on a portal and do export, the procedure for this has been eased. Earlier the procedures were cumbersome and expensive," said Ashish Pethe, Chairman of Gems & Jewellery Council.

Sanjay Agarwal, who is into silver business and runs RV Agarwal Impex Private Limited at Zaveri Bazaar said, "There was nothing for jewellers in this budget. Diamond traders have benefited as import duty has been reduced from 7.5 percent to 5 percent. Nothing for those dealing in gold and silver. We had expectations that import duty on gold and silver, which is currently 7.5 percent, should be reduced, which did not happen for us."