Industry Body Seeks Government Support to Gems and Jewellery Sector

SEATTLE (Scrap Monster): The Confederation of Indian Industries (CII) has sought relief measures in support of the country’s gem and jewellery industry, in a recent letter to the government.

The letter noted that the COVID-19 pandemic has had drastic impacts on the sector. The entire industry has come to a standstill, following the nationwide lockdown announced by the government. The closure of retail businesses has resulted in severe liquidity crisis for all players. Moreover, exports have been impacted very badly, said CII.

ALSO READ: GJEPC Urges Government to Cut High Gold Import Duty

The industry body made several recommendations to the rescue of the sector from total collapse. It recommended that the government should take immediate action to set up a fund to support artisans. In order to overcome the adverse impacts on account of gold smuggling, it urged immediate reduction of gold import duty from 12.5% to 2%. Furthermore, it demanded complete waiver of interest on all loans from banks and NBFCs from the lockdown till 90 days after resumption of normal business.

Meantime, the All India Gems and Jewellery Domestic Council (GJC) has announced financial relief to small-scale gold jewellery artisans. The details from respective jewellers associations will be verified and a sum of INR 1,500 each will be transferred to their bank accounts.