News Bureau

Budget to ensure hike in demand!

Recently GJEPC submitted their charter as expectations from the Budget 2020-21 to transform GJ (Gem & Jewellery) industry & trade. Even Modi 2.0 also wishes to reform the GJ industry & trade. They have wider from Niti Aayog & that report is peeping across the GJ trade & Industry, right from metal, metal refining & up to Assaying & Hallmark of any jewellery. The wider report is feasible & has enough edge to reform this GJ industry & trade with fantastic competitiveness!

Yet the true point is the industry & trade has to adopt a well-accepted benchmark for business to the buyer! The industry must have adequate fact-n-figure and all this needs the GJ industry has to abreast transparency at every fold of business & commerce!

At the juncture, key GJ players have expressed their valued view ahead of the budget for the FY 2020-21. Let’s have a breezy brisk for the fraternity!

Snehal Choksey, Director-Shobha Shringar Jewellers says, “The Current trend of the Jewellery industry as a whole is subdued and we have seen de-growth in business compared to last year. Many factors attributed to this situation mainly a slowdown of Indian Economy including the Steep rise in gold prices and an increase in the customs duty by 2.5% during the year.

So, given the current scenario, I feel and expect that no significant change on the negative side would be announced in the budget, which means the GST would stay at 3% the custom duty would stay at 12.5% and the requirement of Pan Card limit would not be reduced from 2 Lakhs. Overall I feel the budget won't bring any negative announcement for the industry.”

Vaibhav Saraf, Director-Aisshpra Gems and Jewels, “Gold jewellery demand should increase in financial year 2020 with growth in the range of 10-15% due to elevated gold prices. We hope for a reduction in import duty on gold from 12.5% to 8.5%. After the duty hike, the gold price is up nearly 20%. We recommend revising tax slabs for individual taxpayers.

Reduction in personal income tax rates could engage the consumption and spur overall demand for goods and services.”

Jignesh Mehta, Founder & Managing Director, Divine Solitaires, “The gems & jewellery industry has been largely neglected in the last few budgets. As with every sector, development is extremely important in the diamond industry. This industry has still not seen Vikas (development) in the way it is supposed to. In fact, it is the least digitalised sector and the upcoming budget should look into this.

Instead of taking the focus away from entrepreneurs, the industry should be attracting fresh talent and rewarding the deserving ones. People trying to bring about innovation and positive change need to be recognised and encouraged.

Despite being a traditional business in India, where more than 90 per cent of the world's diamond cutting and polishing takes place, the diamond industry has still not received enough attention from the government. We hope that the budget has more to offer to this industry. We need more focus on enhancing customer experience and fulfilment, improving the standards and bringing transparency by taking effective steps to organise this industry.”

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