Government Restricts Gold Imports To Support Indigenous Manufacturing and Artisan Livelihoods

New Delhi : The Indian government has put additional limitations on gold imports, primarily targeting the entry of gold jewellery from ASEAN and SouthEast Asia. This strategic approach intends to boost the Indian jewellery sector by reducing the disproportionate import of bullion relative to jewellery and developing local production skills.

Mr. Saiyam Mehra, Chairman of the All India Gem and Jewellery Domestic Council (GJC), emphasised the enormous difference between bullion and jewellery imports, noting, “India imports bullion to the tune of 600-800 tonnes per annum, which is significantly higher than jewellery.” Because of a 25% import charge, India does not import gold jewellery via formal channels. The import tariff on ASEAN nations was ‘nil,’ resulting in India importing gold jewellery worth $112.09 million in April-May 2023, of which $76.28 million came from Indonesia. The prohibition will now prevent such imports and allow jewellery shops to make all gold items domestically.”

The former practise of importing jewellery for melting at local refineries and selling bullion for larger profits owing to tariff differentials has caused issues within the sector. This conduct not only impacts domestic earnings but also threatens the livelihoods of 70-80 lakh (7-8 million) local craftspeople.

Mr. Saiyam Mehra further emphasised the critical necessity to prohibit the selling of bullion derived from imported jewellery. He observed that such practises leave only liaison employment for local markets and pose a serious danger of displacing many local craftspeople.

Mr. Rajesh Rokde, Vice Chairman of the GJC, remarked, “With the current change, jewellery imports from ASEAN countries have been restricted.” Indian jewellers may now only import gold jewellery via the UAE under the CEPA agreement after paying the applicable import tariff.”

These initiatives are anticipated to boost the expansion of the Indian jewellery sector by allowing indigenous producers to make a broad selection of gold jewellery. By minimising dependence on imports, the government hopes to foster the growth of local craftspeople and protect their job chances. The All India Gem and Jewellery Domestic Council (GJC) appreciates the government’s decision to put limitations on gold imports and stands in solidarity with the Indian jewellery sector in its efforts to foster self-sufficiency and preserve the rich tradition of Indian jewellery artistry.