New Delhi, Apr 5 (KNN) Commerce and Industry Minister Suresh Prabhu has ensured gems and jewellery sector about adequate availability of funds.

Prabhu said, “I have taken up with the Finance Ministry the issue concerning credit to the gems and jewellery sector to ensure adequate availability of funds for them.”

The Minister also stated that the government would soon come out with a gold policy and set up a domestic gold council to promote the growth of the sector.

Prabhu has also said that the ministries are looking at the industry's demand for cutting import duty on gold to 4% from 10%.

“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,” he said.

The Minister told reporters, “At the same time, the Ministry of Finance has a responsibility to curtail CAD (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.”

Prabhu said meetings were held with bankers to address the matter as the genuine needs of the industry should be looked at.

“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.

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

“I hope to reach a logical outcome very soon,” he said.

The secretary also asked the industry for self-regulation, so that rules and regulations could not be violated.

Further, he said the industry needs to look at innovative ideas to exploit India's huge gold reserves to contain imports.

India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. (KNN/JM)