Gem & Jewellery Export Promotion Council Chairman Voices Strong Concerns Over Recent Increase In Gold Import Duty And Agri Cess

The Gem & Jewellery Export Promotion Council has taken note of the Government’s decision to increase gold import duty from 5% to 10% and raise the Agri cess from 1% to 5%. Reaffirming its commitment to the “Nation First” vision championed by Honourable Prime Minister Narendra Modi, the Council stated that the industry stands ready to support measures aimed at strengthening the nation’s economic interests.

Following the announcement, GJEPC convened a meeting with leading retailers and manufacturers and submitted a representation to the Prime Minister outlining a series of industry-led initiatives designed to reduce import dependence and encourage self-reliance. Key recommendations included promoting lower caratage jewellery such as 14K and 9K to potentially cut imports by 20–30%, encouraging consumers to exchange old gold for new jewellery, revamping the Gold Monetisation Scheme to unlock India’s vast idle gold reserves, discouraging investment in gold bars and coins, and introducing a supportive policy framework for exporters to help earn valuable foreign exchange.

The Council also mentioned that it is preparing a comprehensive proposal to revive the Gold Monetisation Scheme for the Government’s consideration.

At the same time, GJEPC reiterated its long-standing view that higher import duties are unlikely to significantly reduce gold imports and may instead push up prices, encourage smuggling, and increase export costs. The Council highlighted that exporters are already burdened by high Bank Guarantee requirements on duty-free gold sourced from Nominated Agencies, creating severe working capital challenges.

According to GJEPC, MSME manufacturers — which form nearly 80% of its membership base and serve as the backbone of the industry — are expected to face the harshest impact amid an ongoing liquidity crunch.

The Council has urged the Government to engage with industry stakeholders to develop balanced, sustainable solutions that support both fiscal objectives and export growth.