New Delhi, July 6 (KNN) The Gems & Jewellery industry is highly disappointed with the budget announcement of increase in import duty on precious metal, gold and silver, said Pramod Agrawal, Chairman of Gem & Jewellery Export Promotion Council (GJEPC).

This along with the continuation of the existing duty structure on diamonds and colored gemstones will result in growth of business in neighbouring countries as the foreign tourists will stop buying jewellery from here and the processing of large diamonds will shift to other competing countries like China, Vietnam, he added.

He said that with cost of doing business going up, export competitiveness will go down, also resulting in job losses.

Welcoming the continuation of the ‘Reform, Perform & Transform’ principles, Agrawal said that “India’s Gem & Jewellery Industry desires a level playing field with other world centres to maintain its global leadership position”.

The Council also welcomed certain specific new steps announced in the Budget such as no charges on digital modes of payments for establishments with a turnover of more than Rs 50 crore, the application of 25% corporate tax rate to companies with turnover of upto Rs 400 crore etc..

It also welcomed steps to boost traditional industries and their artisans as well as the cluster-based development programs, while reiterating some of the changes it had sought from the government during pre-Budget deliberations.

GJEPC hopes that the Government’s initiative of creating world-class universities will also extend to gem & jewellery training and skill development institutes and also that the Pradhan Mantri Shram Yogi Maan Dhan Yojana pension scheme will benefit lakhs of workers in gem & jewellery businesses. (KNN/Lavannya)