Status quo maintained; GJ industry wish list not addressed
As expected, the Interim Budget 2024 has maintained the status quo. The budget entirely focused on fiscal consolidation and not populism, which was expected to be in focus because of the upcoming general elections. Finance Minister Nirmala Sitharaman announced that there would be no alterations to taxation. She proposed to maintain the existing tax rates for both direct and indirect taxes, including import duties.
There was no announcement related to GJ industry; none of the items on the GJ associations’ wish list were addressed. However, the GJ industry welcomed the interim budget and commended the Government of India’s consistent efforts in ensuring inclusive growth. The general consensus was that the interim budget showcased the vision of the government to lead India towards the goal of Viksit Bharat by 2047.
For GJ exporters, the recently announced India-Middle East-Europe Economic Corridor is a strategic and economic game changer for India and others.
We welcome bilateral trade agreements with European countries and others to boost GJ exports.
Before FM presents the full budget GJEPC seeks inclusion of GJ artisans and craftsmen in the PM Vishwakarma Yojana provides end-to-end support scheme.
Of the increase outlay of Rs. 11.11 lakh crore announced by the FM, we seek allocation towards modern infrastructure such as Jewellery Parks for boosting GJ exports from India.
As 80%+ of GJ industry are MSMEs, we urge FM to include Government schemes for GJ that will help the sector compete globally, including the skilling and training for MSMEs.
Vipul Shah
Chairman GJEPC
We welcome the interim budget announced by FM Nirmala Sitharaman, and commend the Government of India’s consistent efforts in ensuring inclusive growth as well as recognizing the pivotal role of women in economic transformation, through a diverse array of initiatives.
The country’s phenomenal growth trajectory and economic prowess in the past decade, has been nothing short of extraordinary, particularly the surge in FDI, which witnessed two-fold increase over the past two decades. As we celebrate the golden era, we would like to applaud PM Modi’s commitment and vision for fostering a thriving economic landscape. The ‘First Develop India’ (FDI) initiative, geared towards encouraging foreign partnerships, exemplifies a collaborative spirit towards economic progress.
Furthermore, we believe the PM Vishwakarma Yojana is playing a critical role in empowering the India’s artisan community. With benefits extending across 18 trades, it symbolizes the Government of India’s holistic approach towards preserving traditional craftsmanship and contributing significantly to the nation's economic fabric.
T S Kalyanaraman
MD – Kalyan Jewellers
This interim budget couldn’t gladden the bullion industry participants, as there were no major announcements related to this industry. The wish list from the bullion industry was very long, like reducing 15% import duties on precious metals, reducing 3% GST, exempting Capital Gain Tax on gold jewellery sales, GST refunds to NRIs, simplifying TCS and TDS rates, etc. All taxes and duties remain in status quo until the next budget.
Prithviraj Kothari
MD - RiddiSiddhi Bullions Limited
The budget lays strong emphasis on an inclusive and decentralized economic growth that will position India among the supremacy of developed nations. Game-changing strategic move of creating a MSME-friendly regulatory environment, and facilitation of advanced training to trade and compete at a global level will empower a large number of gems & jewellery exporters, thus driving high-octane economic growth for the country.
The recently announced India-Middle East-Europe economic corridor will act as a key enabler that will help Indian gems & jewellery exporters establish new trade relations in the overseas markets. Overall, the announcements made in today’s budget showcase the vision of the government to lead India towards the goal of Vikasit Bharat by 2047.
Colin Shah
MD, Kama Jewelry
Jewellery industry was hoping for a duty reduction primarily on gold. Currently the 15% duty is very high coupled with international gold prices also at an all time high making gold extremely unaffordable for the average citizen. Smuggling will increase which in unfavourable for our economy.
Pratap Kamath
MD-Abaran Timeless Jewellery Pvt Ltd
Bullion Industry stakeholders had a lot of expectations from the government to simplify and reduce the duties structure of the gold trade in this budget and solve the challenges they faced. However, none of these issues and challenges were addressed in this interim budget. Bullion Market participants have forwarded these hopes and expectations for the final budget, which will be announced after the elections this year.
Sachin Kothari
Director -Augmont Gold For All.
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