The Indian government has recently imposed new restrictions on gold imports, specifically targeting the import of gold jewellery from ASEAN and Southeast Asia. This strategic move aims to strengthen the Indian jewellery industry by curbing the disproportionate import of bullion compared to jewellery and fostering local manufacturing capabilities.
Saiyam Mehra, Chairman, All India Gem and Jewellery Domestic Council (GJC), highlighted the significant disparity between bullion and jewellery imports, stating, “India imports bullion to the tune of 600-800 tonnes per annum, which is substantially higher than jewellery. India does not import gold jewellery through official sources due to a 25% import duty. The import duty on ASEAN countries was ‘zero’, which resulted in India’s import of gold jewellery to the tune of more than 3.5 tonnes valued at $112.09 mn in April-May 2023, of which $76.28 mn came from Indonesia. Now, the restriction will stop such imports and enable jewellery retailers to manufacture all gold ornaments locally.”
It is heard that the previous practice of importing ornaments for melting in local refineries and selling bullion for higher profits due to duty differentials has raised concerns within the industry. This practice not only affects domestic revenue but also poses a significant threat to the livelihoods of 7-8 mn local artisans.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
