New Delhi, Sept 17 (KNN)  Government today raised import duty on gold and silver jewellery from 10 per cent to 15 per cent  to protect the domestic  jewellery- making industry which is dominated by small artisans and goldsmiths and silversmiths.  

“It is a labour intensive industry. Millions of artisans are dependent on this sector for their livelihood. In the absence of any duty differential between articles of jewellery and primary metal, which was 8 per cent  in the case of gold jewellery and 4 per cent  in the case of silver jewellery in January 2012, there is an apprehension that Indian jewellery makers would not be able to compete with cheaper imports, particularly when majority of the imported jewellery is machine-made as compared to handmade jewellery in India. To protect the interests of small artisans, the customs duty on articles of jewellery and of goldsmiths’ or silversmiths’ wares and parts thereof is being increased from 10 per cent  to 15 per cent, “ a Finance Ministry statement said here.  

The government had been revising upward customs duty on raw gold which is presently at 10 per cent .  In order to have incentives for the domestic jewellery making, it was necessary to have higher import duty on jewellery than pure gold. The decision will remove this anomaly. India is world’s largest consumer of gold and most of its 900 tonnes requirement per annum is met through imports causing a huge drain on the current account deficit. (KNN/PC)