The Gem & Jewellery Export Promotion Council (GJEPC) has initiated industry-wide consultations to formulate a comprehensive proposal aimed at reducing India’s Current Account Deficit (CAD) through measures related to gold imports, domestic gold mobilisation, recycling, low-karat jewellery promotion, and export incentives. The recommendations gathered from industry stakeholders will be consolidated and submitted to the Government by 5th June 2026.
Quick Summary
- GJEPC invited member suggestions on Gold Monetization & CAD reduction measures.
- Industry consultation meeting was held on 22nd May 2026.
- Focus areas include low-karat jewellery, GMS revamp, gold recycling, and export incentives.
- Temple gold remains outside the scope of the proposed framework.
- No import duty reduction on gold has been proposed.
- Recommendations to Government are scheduled for submission by 5th June 2026.
- Members must submit inputs by 28th May 2026.
Reference to Industry Meeting on CAD Reduction
This is in reference to the meeting held on 22nd May 2026 with key industry associations, to deliberate on measures for reducing the Current Account Deficit (CAD), particularly in the context of gold imports and domestic gold mobilisation.
Industry Consultations & Proposed Framework
In line with the above, GJEPC, in coordination with AIGJC & other stakeholders from the industry, is undertaking consultations to formulate a comprehensive industry proposal on :
- Promotion of Low-Karatage Jewellery to reduce overall gold consumption while sustaining manufacturing and consumer demand.
- Revamping of the Gold Monetisation Scheme (GMS) through a renewed incentive framework to mobilise idle household gold into the formal economy.
- Encouraging Exchange of Old Gold Jewellery to promote recycling and reduce fresh demand for imported gold.
- Discouraging Passive Gold Investments such as bars and coins, while treating jewellery consumption distinctly due to its high domestic value addition and employment generation.
- Incentivising Gems & Jewellery Exports, as the sector is a major contributor to foreign exchange earnings and employment. Enhanced export support would help offset weaker domestic demand and strengthen India’s forex position.
Agreed Broad Principles for Industry Paper
It is agreed broadly that the following broad principles would be followed while preparing the industry paper:
- Temple gold will remain outside the scope of any proposed framework or changes.
- No amnesty scheme under the Income Tax framework will be considered.
- No recommendation on reduction or removal of import duty on gold should be proposed under the current framework.
- Measures need to be explored to temporarily discourage the investment in gold in any forms like bars, coins, billets, ETFs etc.
- The proposed framework should ensure protection of value and inspire confidence among consumers and participants.
- The scheme should operate strictly within existing regulatory norms of Govt. and permitted Hedging or price protection mechanisms may be explored to address price volatility risks.
- Rules and operational procedures should be practical, transparent, and non-restrictive for trade.
- Jewellers will continue as principal medium for implementation of the framework, backed by appropriate declaration, valuation, and monitoring mechanisms.
- Promotion of lower carat jewellery (9K, 14K, and 18K hallmarked jewellery) will be encouraged to reduce gold consumption intensity.
- Adequate safeguards against individuals & firms indulging in smuggling should be incorporated by Govt. along with stringent provisions for violations.
- The industry to actively support anti-smuggling initiatives through cooperation and information-sharing within the legal framework.
Call for Member Suggestions & Submission Timeline
Members are requested to consider the above points when framing their suggestions/proposals.
Given the tight timelines for submission to the Government, members are requested to kindly share their inputs, suggestions, and recommendations latest by 28th May 2026 with Mr. Sabyasachi Ray, Executive Director, at goldproposal@gjepcindia.com
The consolidated industry paper is proposed to be finalized and submitted to the Government by 5th June, 2026.
Contact Details for Clarifications
For any clarification you may write an email to preetha.shalu@gjepcindia.com/usha@gjepcindia.com
Importance of Industry Participation
The gems and jewellery sector plays a critical role in supporting livelihoods, MSMEs, and exports. Your timely inputs will be instrumental in ensuring that the industry’s position is effectively represented while aligning with national priorities.
FAQs
What is the purpose of GJEPC’s latest industry consultation?
The consultation aims to gather industry recommendations for reducing India’s Current Account Deficit (CAD) through gold monetization, recycling, low-karat jewellery promotion, and export incentives.
What are the key focus areas of the proposed industry paper?
The proposal focuses on low-karat jewellery promotion, Gold Monetisation Scheme reforms, old gold exchange, discouraging passive gold investments, and incentivising gems & jewellery exports.
Will temple gold be included in the proposed framework?
No, temple gold will remain outside the scope of the proposed framework or any recommended changes.
Is GJEPC proposing a reduction in gold import duty?
No recommendation regarding reduction or removal of gold import duty is being considered under the current framework.
By when should members submit their recommendations?
Members have been requested to submit their inputs and suggestions by 28th May 2026.
When will the final industry proposal be submitted to the Government?
The consolidated industry paper is expected to be finalized and submitted by 5th June 2026.
What types of gold investments may be discouraged?
The framework proposes measures to temporarily discourage passive gold investments such as bars, coins, billets, and ETFs.
Why is low-karat jewellery promotion being encouraged?
Promotion of 9K, 14K, and 18K hallmarked jewellery is intended to reduce overall gold consumption intensity while sustaining manufacturing and consumer demand.
Source: SVAR Media Network
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