News Bureau

Reaction of GJ Fraternity on Budget

Key players of GJ (Gem & Jewellery) industry & trade fraternity have expressed their reactions & view on Budget 2020-21. Let’s keep up!

Somasundaram PR, Managing Director, India, World Gold Council, “Measures to boost farmers’ income and reduce taxes for the middle class will boost purchasing power and consumer confidence, which will benefit jewellery industry as well. Focus on the next wave of the digital revolution will add impetus to digital gold products. The unmistakable thrust towards transparency sets the long term direction for the trade which will see many policy and market-led changes.

In this context, the establishment of a regulated International Bullion exchange in GIFT City in India is a positive step towards making gold a mainstream asset class. With its unique locational, infrastructural and regulatory advantages as an IFSC, GIFT city is well placed to build a fair, efficient and transparent bullion trading ecosystem. An organised bullion trading system will benefit the entire supply chain particularly, small players and exporters.”

Ishu Datwani, Founder, Anmol, “I think the Budget is a lost opportunity. I was expecting big & bold reforms. Other than the abolition of the Dividend Distribution Tax there are no other major reforms. We were expecting a reduction in import duty, though the International bullion exchange helping in gold recycling is a welcome move. Overall it was just about a very average budget.

Vaibhav Saraf, Director, Aisshpra Gems and Jewels: “This budget has been made keeping all levels of the society in mind. Major boosts have been provided to farming, infra, health and education sector which will increase public spending and result in a boost to the economy.

Taxpayers’ charter is a major step towards ending harassment. The new personal tax regime will result in huge savings. Amnesty for ending pending litigations is also a major step. International bullion exchange will help in greater transparency in domestic gold recycling.

Tanya Rastogi, Director, Lala Jugal Kishore Jewellers, “Even though the budget gives a relief to the common man with income tax benefits, I had more expectations from it and expected it to be more reformative for the economy. As it also gives some relief to the agriculture sector and the wedding season is ongoing, it should have a positive impact on gold buying.

The surcharge on short term capital gains and long term capital gains have been reduced from 25% & 37% respectively to 15%. This will pass on direct benefit to the consumer thereby encourage spending on commodities like gold.

Shreyansh Kapoor, Vice-President, Kashi Jewellers said, “Expecting a reduction in the import duty on gold in the coming Union Budget. There has been a steep decline in jewellery sales over 12 months & Jewellers are facing adverse impacts of the slowdown because of the increase in gold prices and a slowing of the overall economy so an immediate need for a cut in customs duty is expected”

Dr Saurabh Gadgil, CMD, PNG Jewellers, “The first budget of the decade has no announcements for the gems and jewellery sector and that is a big disappointment. The announcement of the bullion exchange in gift city seems interesting but further details are awaited.

The budget seems to be a very strategic and long term but no cognisance has been taken of problems on the ground.  The changes in income tax slabs come with riders and will eventually make tax filing more complicated for the common man. Every individual will now require an accountant to file taxes.

The only silver lining is the sops announced for the farming sector, if that has a positive impact then consumption of gold will increase, however, we need to see the fine print of the budget to accurately judge it impacts.  Overall, our requests for reduction of import duty and other sops to increase consumption have gone unheard and that is disappointing.”

Shailen Mehta, Founder, Managing Director, eJOHRI, “Digital revolution plays a crucial role in the growth of the Indian Startup ecosystem and  Initiatives like online tax assessment, facial assessments, facial KYCs will provide the much-needed stack, essential for the growth of start-ups. ESOPs have become instrumental in the Indian corporate and start-up ecosystem to woo high-value employees and retain talent. Exemption of taxes on ESOPs will further encourage companies to introduce ESOPs in their companies at a large level, which in turn will allow them to attract world-class talent while keeping employee costs in check. 

India is the third-largest start-up hub in the world, the introduction of an Investment Clearance Cell and  seed funding will provide a boost to young entrepreneurs of India who  are enthusiastically looking to build a bootstrapped business and build sustainable revenue businesses.”

Rajesh Neelakanta, ED & CEO-BVC Logistics, “The focus on logistics through the development of 9000 km of economic corridors is a welcome move. It will encourage economic transformation and seek to improve connectivity that is much needed for the growing economy.

We look forward to the National Logistics Policy which will clarify the roles of the Union Government, State Governments and key regulators. We are keen to know about the e-logistics market as mentioned by FM. It will be interesting to see the thrust on agri-warehousing and proposal of running Self Help Groups (SHG) in the villages to reduce logistics costs. We are hoping that the local economy will revive through the SHG.

The initiative to invest 100 lakh crores in infrastructure will definitely have a positive impact on the nation’s logistics and transportation industry both from a business and connectivity perspective.” 

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