JOIN USUnion Budget 2022: Jewellery industry to benefit from reforms
By Pawan Gupta
The pandemic has been largely disruptive in terms of economic activity as well as a loss of human lives. Almost all sectors, including the jewellery industry, have been adversely affected globally as domestic demand and exports crashed sharply. Many are still struggling to get back on their feet as one wave after the other hinders recovery.
During the festive season last year, things started getting back on track for the jewellery industry as there was a significant jump in sales. However, the situation was dismal once again during the wedding season due to a surge in Covid cases.
The jewellery industry, which is is one of the leading contributors to the national economy, is in dire need of major reforms and support. Thankfully, the Union Budget 2022-2023 included some positive measures that will help the industry's overall growth in the coming year.
The government’s decision to reduce customs duty on cut and polished diamonds and gemstones to five per cent will provide much-needed relief to the jewellery industry as well as consumers.
This will also encourage the consumers to move forward from traditional investment methods like gold, real estate and fixed deposits to coloured gemstones and diamonds.
We also appreciate the government’s decision to facilitate the export of jewellery through e-commerce and hope this will give the boost our jewellery industry needs right now to recover from the adverse impacts of the pandemic. This move will also enhance the tracking mechanism of illegal transactions of diamonds and gold.
India has always been a global leader in gems and jewellery. However, due to the vast nature of this industry, earlier there was no verified database of the number of employees in this sector. Hence, this decision to, finally, facilitate the export of jewellery through e-commerce shall make it easier for policymakers to reach out and promote our sector most favourably.
In brief, this budget did help uplift the industry’s morale once again to fight back. The industry employees, as well as the leaders, are now hopeful that with the support provided by the government, exports would bounce back in the coming months.
The author is the director of PP Jewellers by Pawan Gupta