The All India Gems and Jewellery Trade Federation (GJF) has asked the government to reduce the import duty on gold tp 2% from its current level of 10%, saying that this was necessary to “protect and nurture our indigenous industry” and “check smuggling”. The proposal has been made in the light of the fall in the prices of oil and gold in the international markets and the fact that the current account deficit (CAD) is now under control, said Chairman Haresh Soni while speaking to the media.

In the light of the Prime Minister’s ‘Make in India’ initiative, the trade body has also asked the government to formulate a comprehensive gold policy for India and make India a global jewellery hub.

“We propose that the difference between import duty of raw material (gold & silver) and finished jewellery (gold & silver) to be maintained at minimum 10% (for gold) and 15% (for silver),” Soni said.

Manish Jain, vice chairman, GJF, said, ''To provide incentive for the organised manufacturing facility, Government must reintroduce metal gold loans (MGL), innovative finance options for sector and bring the MGL rate of interest on par with international rates.”

Some of the other key points include:

1. Exclude jewellery from all bilateral or multi-lateral free trade agreements (FTAs)

2. Revamp of manufacturing clusters including setting up of common facility centres

3. Skill upgradation programmes

4. Create a comprehensive gold mining policy for domestic exploration

Ease rules for transportation from manufacturing