The Swarna Shilpa Bachao Committee (SSBC) has raised concerns regarding the growing economic pressure on India’s gems and jewellery industry following increased import duties on Gold, Silver, and Platinum, along with recent public advisories discouraging gold purchases. According to the industry body, the situation has impacted consumer confidence, retail demand, MSMEs, artisans, exporters, and overall business sentiment across the sector.
Quick Summary
- SSBC has highlighted concerns over the impact of high import duties on the jewellery industry.
- The industry body stated that declining consumer sentiment has affected retail demand and market confidence.
- MSMEs, artisans, exporters, and manufacturers are facing operational and financial pressure.
- SSBC noted that higher import duties may unintentionally encourage illegal smuggling activities.
- The committee has called for rationalisation of import duties on Gold, Silver, and Platinum.
- Industry stakeholders have also sought stronger policy support and structured consultations.
SSBC Highlights Economic Concerns in Jewellery Sector
The Swarna Shilpa Bachao Committee (SSBC) has submitted a representation highlighting the severe economic impact currently being faced by India’s gems and jewellery industry due to public advisories discouraging gold purchases and the continued high import duty structure on precious metals.
The representation acknowledged the Government of India’s efforts towards maintaining economic stability, strengthening foreign exchange reserves, and safeguarding national interests. It also highlighted the longstanding contribution of the gems and jewellery sector towards employment generation, exports, value addition, tax revenues, and preservation of India’s traditional craftsmanship heritage.
Declining Consumer Confidence & Retail Demand
According to the representation, recent public communication regarding gold purchases has created uncertainty and adverse market sentiment across the jewellery trade. The sector, being highly sentiment-driven, has reportedly witnessed a decline in consumer confidence, reduced retail demand, deferment of orders, liquidity stress, and financial instability amongst manufacturers, traders, and MSMEs.
The representation further noted that the gems and jewellery industry remains one of India’s largest labour-intensive sectors, supporting millions of artisans, karigars, polishers, designers, transporters, and ancillary workers both directly and indirectly. It warned that prolonged contraction in legitimate consumer demand could significantly impact employment and economic activity across multiple manufacturing clusters and states.
Impact of High Import Duties on Trade Competitiveness
SSBC also highlighted concerns regarding the effective import duty and associated levies on precious metals, which currently amount to approximately 15%. According to the representation, the higher duty structure has substantially increased raw material costs and working capital burdens for compliant businesses operating within the formal economy.
The representation stated that the present duty structure may unintentionally encourage illegal smuggling activities and parallel unregulated trade channels, adversely impacting transparent and tax-compliant industry participants. It also pointed out that Indian manufacturers are competing against international markets where precious metal import duties remain comparatively lower, thereby affecting the competitiveness of Indian jewellery manufacturers in global markets and increasing operational pressure on MSMEs and export-oriented units.
Gold’s Cultural & Financial Importance in India
The representation emphasised that gold in India is not merely a commercial commodity but also an integral part of Indian culture, weddings, festivals, family savings, and women’s financial security. It further noted that prolonged suppression of legitimate gold demand may impact economic circulation, employment generation, GST revenues, exports, and the sustainability of traditional jewellery manufacturing ecosystems.
Key Recommendations Submitted by SSBC
As part of its representation, SSBC urged the Government to consider:
- Issuing suitable clarification supporting legitimate jewellery trade and lawful consumer purchases.
- Rationalisation and review of the prevailing import duty structure on Gold, Silver, and Platinum.
- Structured consultation with recognised industry stakeholders and trade bodies before implementation of measures affecting the sector.
- Policy support and protection for MSMEs, artisans, and export-oriented jewellery manufacturing units.
- Stronger enforcement against illegal smuggling activities while ensuring economic viability of lawful trade channels.
Industry Seeks Balanced Policy Measures
The representation concluded by stating that balanced policy measures could simultaneously safeguard national economic interests while protecting one of India’s most employment-intensive and culturally significant industries. It also appealed for consideration of the interests of millions of individuals associated with the gems and jewellery sector across India.
The representation was submitted by Samar Kumar De, Working President of Swarna Shilpa Bachao Committee (W.B.).
FAQ
Why has SSBC raised concerns about the jewellery industry?
SSBC has highlighted the economic challenges faced by the gems and jewellery industry due to higher import duties on precious metals and weakening consumer sentiment towards gold purchases.
What impact are higher import duties having on the industry?
According to the representation, higher import duties have increased raw material costs, working capital burdens, and operational pressure on MSMEs and export-oriented jewellery units.
What concerns were raised regarding consumer demand?
The representation stated that reduced consumer confidence and declining retail demand have created liquidity stress and financial instability within the jewellery trade.
How does gold contribute to the Indian economy and culture?
Gold plays a significant role in Indian weddings, festivals, family savings, and women’s financial security, while also contributing to employment, exports, and GST revenues.
What recommendations were made by SSBC?
SSBC recommended rationalisation of import duties, structured consultations with stakeholders, support for MSMEs, and stricter action against illegal smuggling activities.
Who submitted the representation on behalf of SSBC?
The representation was submitted by Samar Kumar De, Working President of Swarna Shilpa Bachao Committee (W.B.).
Source: SVAR Media Network
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