Industry Leaders Celebrate Budget Boost for Jewellery Sector and SMEs

Mumbai : The gems jewellery sector in India is celebrating with the Finance Minister announcing the  reduction in the basic customs duty on gold and silver to 6% and on platinum to 6.4% during the Union Budget 2024-25 presentation on Tuesday. 

Saiyam Mehra, Chairman, All India Gem & Jewellery Domestic Council (GJC) said, “It is a commendable move by the government. This was a long-standing demand from the All India Gems & Jewellery Domestic Council, which represents the entire gems and jewellery industry. The customs duty reduction will benefit domestic jewellery manufacturers, especially small and medium enterprises, encouraging them to transition gradually to the formal channel” 

Additionally, the Finance Minister has also increased the scope of working capital loans to SMEs and MSMEs, which will help these units expand their businesses in the future. The extension of the direct benefit transfer scheme to the manufacturing sector, with separate salary and Employees’ Provident Fund transfers directly to the accounts of employers and employees, is a wonderful move. This will accelerate employment generation in India. Overall, this budget has focused on 9 key priorities of Viksit Bharat and we are proud to witness it, said Mehra.

Rajesh Rokde, Vice Chairman, GJC said, “We admire Finance Minister Nirmala Sitharaman ji’s Union Budget presented today, which stands out in several ways. Notably, after persistent efforts from GJC, the government has reduced customs duties on gold and silver to 6 % and on platinum to 6.4%. This move will provide significant relief to consumers who have been investing in alternative assets, encouraging them to return to gold investments. We are confident that household investment and savings in India will see an increase in the coming days.

Additionally, the expansion of working capital loans for SMEs and MSMEs in the jewellery sector will provide a much-needed boost. The increase in the personal income tax exemption limit will also benefit consumers and promote household savings. Overall, the Union Budget 2024 is commendable.