New Delhi, Nov 24 (KNN) The issue of credit flow to the gems and jewellery sector has been taken up with the finance ministry, to ensure adequate availability of funds for them, said Suresh Prabhu, Commerce and Industry Minister during the 2^nd edition of India gold policy and jewellery summit.

He added that the government is working towards promotion of gems and jewellery export.

Prabhu also said the ministries are looking at the industry’s demand of cutting import duty on gold to 4 per cent, from the current 10 per cent.

The industry also wants a reduction in the duty on diamond to 2.5 per cent from 7.5 per cent.

“This is one of the important issues for the industry that is export-oriented. If you have import duties, the working capital gets blocked up. So, we are already working on that.

“At the same time, the Ministry of Finance has a responsibility to curtail current account deficit, therefore they are also trying to find out how we can keep the imports under control. So, we have to balance both together,” the Minister told.

“I have again taken up the issue with the finance ministry and we will make sure that the industry is not starved of necessary finances,” he added.

Government will soon come out with a gold policy and set up a domestic gold council to promote the growth of the sector, Prabhu said.

Commerce Secretary, Anup Wadhawan said various stakeholders are being consulted on formulation of the policy and setting up of the council.