Indian Ministry to Publish Integrated Gold Policy

SEATTLE (Scrap Monster): The Indian government is working on an integrated gold policy, which will be released at the earliest. The policy will cover all aspects of the country’s gold industry and will provide big boost to the domestic gold sector in the country. The policy will have recommendations aimed at enhancing the exports of gems and jewellery.

Speaking to media, Suresh Prabhu, Commerce and Industry Minister announced that the government intends to call a meeting of all concerned in providing final touches to the proposed policy. The meeting will also consider the long-pending demand by the gold industry in connection with abolition or reduction of duty on imported gold. The industry has been demanding a reduced import duty structure of 4% instead of the existing 10%.

According to the minister, the policy will focus on promoting exports of gems and jewellery, which already forms a major component of the country’s exports. The country has great potential to turn out to be a key exporter of value-added gold, he said. The policy proposes setting up of gold board and bullion exchanges, Prabhu added.

Earlier, the country’s Finance Ministry had hinted at release of a draft policy towards development of gold as an asset class. Also, Niti Aayog-the policy think tank of the Government of India had proposed to slash the import duty on gold as well as the Goods & Services Tax (GST) rate of precious metals from the current 3%. The Gem and Jewellery Export Promotion Council (GJEPC) too has urged inclusion of the sector under the Merchandise Exports from India Scheme (MEIS), which in turn will offer several duty benefits.