The gems and Jewellery sector always look out for the budgetary allotments and duty reductions from the union budgets. With any tax hike or duty reduction on imports, the jewellery markets are impacted directly. The gold market in India, importantly is thriving at the present moment, as common investors have realized the potential of gold against inflation, this pandemic. So, apart from the trend of buying gold jewelleries in the festive/wedding season, people have shown much interest in gold throughout the year. To boost this Gems & Jewellery market in India, FM Nirmala Sitharaman has decided to reduce the custom duty to make gold cheaper. The budget mentioned that customs duty on cut and polished diamonds and gemstones will be reduced to 5%, and simply sawn diamonds will attract no customs duty.
Commenting on that, According to Abhishek Kajaria, Owner/Founder, Avama Jewellers. "The Union Budget 2022-2023 included some much-needed reforms for the Gems & Jewellery sector. Reduction in import duty on cut and polished diamonds to 5% from the current 7.5% will further help in strengthening the sector. Furthermore, the Budget emphasis on increasing rural economy will indirectly help the gem and jewellery industry."