Wednesday, 12th January 2005 (4498 views)

The Indian jewellery industry is pushing to be given the freedom to import gold jewellery for retailing within its own borders.

The move is part of a host of proposals that the industry is bidding to drive through in its pre-Budget memorandum.

Whilst the Indian jewellery market is valued at over $10 billion, the branded jewellery market is pegged at only about $500 million.

The industry believes the current rules are antiquated and wants them changed.

It is believed the proposals include the possibility of the Government allowing duty-free imports of gold for the domestic industry.

Currently, only export-oriented jewellery units are allowed this facility.

"If the Centre allows gold imports by the domestic industry, it would also help to curb an evil practice," a source told the Economic Times.

"There have been instances of domestic players buying gold from incoming travellers. Current rules only allow incoming travellers to bring in gold."

A dealer argued that allowing the trade to import gold jewellery for retailing in the country is "long overdue, given that today you allow imports of cars, mobiles and other such items".

"The retail trade is willing to pay the requisite amount of import duty," he continued.

"Branded jewellery has a lot of aspirational value."

 

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