Budget Reaction by Mr. Vipul Shah, Chairman of GJEPC
“The Union Budget, presented by Hon. Finance Minister Smt. Nirmala Sitharaman, puts India on the path to Viksit Bharat. The Budget measures would help India fulfill its domestic growth potential while also revealing a new trade strategy to handle global challenges.
GJEPC supports the acknowledgment of exports as the fourth engine of growth, as well as the new Export Promotion Mission, which has sectoral and ministerial aims and is led by the Union Commerce, Finance, and MSME Ministries. This would make it easier for MSMEs to obtain cross-border export loans and provide factor help to overcome non-tariff barriers in exports. GJEPC welcomes the digital public infrastructure ‘BharatTradeNet’ (BTN) for international commerce, which will serve as a unified platform for trade documentation and financing solutions.
GJEPC further supports the proposal to create new tariff items in Chapter 71 to distinguish precious metals containing 99.9% or more by weight of silver, 99.5% or more by weight of gold, and 99% or more by weight of platinum under headings 7106, 7108, and 7110, respectively. This approach is consistent with GJEPC‘s representation to address the issue of classification of platinum alloys (predominantly comprising gold), which was inevitably leading to claims of undue customs duty exemptions for platinum imports under the India-UAE CEPA.
The gem and jewellery business accounts for 85%-90% of MSMEs. The change of MSMEs’ classification requirements, particularly for those with turnovers ranging from Rs. 250 crore to Rs. 500 crore, will assist them in achieving greater scale efficiencies, technical advancement, and improved access to funding. The extension of credit guarantee cover to MSMEs, which would result in an additional credit of Rs. 1.5 lakh crore over the next five years, will benefit and strengthen MSMEs in the sector.
The government’s consistent approach to tariffs and levies on gem and jewellery products would improve ease of doing business. The Basic Customs duty rate on platinum finds designated as 7113 has been decreased from 25% to 5%, allowing consumers to obtain a new product and increasing inexpensive jewelry sales.
GJEPC praises the government’s labor-intensive approach to increasing productivity, quality manufacturing, and global competitiveness. The G&J business is labor intensive, with 5 million people employed in exports. The announcement of the National Manufacturing Mission and the National Centers of Excellence Skill development that promotes ‘Make for India, Make for the World’ is positive and will benefit the sector directly.
GJEPC supports income tax reduction incentives to increase consumer demand. Overall, the Union Budget delivered by Hon. Finance Minister Smt. Nirmala Sitharaman positions India for growth towards Viksit Bharat. The Budget measures would help India fulfill its domestic growth potential while also revealing a new trade strategy to handle global challenges.
GJEPC is still dedicated to working with the Government of India to ensure that the industry continues to contribute meaningfully to the country’s economy. Council requests the publication of FAQs on Safe Harbour Taxation. We ask Hon. FM’s cooperation for co-funding worldwide diamond promotion initiatives, including jewels parks on the harmonized infrastructure list, and establishing an Infrastructure cooperation Fund to build a Gem Bourse in Jaipur.
GJEPC asks the government to harmonize legislation with worldwide benchmarks and to implement a policy that encourages exports, innovation, the use of technology, and the adoption of sustainable practices.