New Delhi: The gems and jewelry industry welcomed the Union Budget 2022-23, saying it included some much-needed reforms that would springboard the sector to multi-fold growth in the coming year.
The Gem and Jewelry Export Promotion Council noted that the sector is one of the leading contributors to the national economy and the country is the undisputed leader in diamond processing.
”Reduction in import duty on cut and polished diamonds to 5 per cent from the current 7.5 per cent will further help in strengthening the sector and retain its leadership position,” the Gem and Jewelry Export Promotion Council (GJEPC) chairman Colin Shah said.
Finance Minister Nirmala Sitharaman announced cutting import duty on cut and polished diamonds and gemstones while presenting the Union Budget 2022-23, to 5 per cent while on sawn diamond to nil in order to boost the sector.
Presenting the Budget for 2022-23 in the Lok Sabha, Sitharaman also announced that the government will facilitate export of jewellery through e-commerce for which it will implement a ”simplified regulatory framework” by June this year.
To disincentivize import of undervalued imitation jewellery, the customs duty on imitation jewelry is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import, the minister added.
Shah said, since more than 90 per cent of the gem and jewellery sector consists of MSMEs, the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs up to March 2023 will be a great relief to the sector, and we are happy that its outlay has been increased by Rs 50,000 crore to a total cover of Rs 5 lakh crore.
How will the budget impact NRIs?
New Delhi: The government is aiming to step up spending to $529.7 billion (Rs39.45 trillion) in the coming fiscal year to drive economic growth and infrastructure.
The introduction of the digital rupee might benefit NRIs in reducing the cost of cross-border remittances.
E-passports with the embedded chip will help in managing arrival and departure with ease. The chip will help in linkages of data with the Indian Ministry of External Affairs and tax authorities.
Those who want to file updated tax returns can do it for 2 years from the end of the assessment year. It will also help those who are living abroad.
The e-passports will help NRIs and the RBI’s digital rupee will be a trendsetter in the digital currency market.