FM, addressing the Federation of Indian Export Organisations (FIEO) interactive session in Chennai, said government was fully aware of the impact of the policy on the jewellery industry.
Responding to a query from Titan Industries' MD, the Finance Minister said "Our policy today is we are constraining or restraining such gold coming into India for conversion into jewellery. That is a deliberate policy we have taken. There is a huge amount of gold within the country. We have no problem if you buy that gold and use it for jewellery. The under-utilisation of gold jewellery capacity is an intended consequence."
Titan Industries, in its representation said, "...the whole process is being monitored by the customs department and even though the rules were published over a month back, the actual implementation of the same on the ground was far from smooth. This has resulted in gold imports falling very sharply and consequently smuggling of gold seems to have increased considerably".
FM said government will take care of smuggling, and the industry doesn't need to worry about that.
Dion Global Solutions Ltd.