MUMBAI (Scrap Monster): The All India Gems and Jewellery Trade Federation (GJF) today welcomed the recent circular issued by the Reserve Bank of India (RBI) in announcement of eased norms with regards to gold imports into the country. Further, it stated that the industry’s worst days are most likely over.

 

Meantime, the trade body expressed firm hope that the government may announce reduction in import tax on gold during the budget. Additionally, GJF also demanded granting of National Jewellery Council status. Also, it called upon the government to set up jewellery parks in different parts of the country in a bid to transform India into a global jewelry manufacturing hub. This in turn could contribute significantly to the revival of the struggling gems and jewelry industry in the country, GJF noted.

 

Commenting on the recent RBI directives, Bacchraj Bamalwa, Director, GJF, stated that the trade body was extremely glad that the central bank has finally come out with clarity on gold imports and gold metal loans. In a recent notification, the RBI had lifted the ban on imports of gold coins and medallions by banks and trading houses. Also, banks were allowed to lend gold on loan to jewelers. However, the RBI had clarified that banks are still restricted from sale of gold coins and medallions.

 

The award of industry statute will guarantee fiscal benefits, credit facilities and competitive insurance schemes. The revival of the industry is likely to create immense employment opportunities in line with the ‘Make In India’ campaign by the country’s government. However, acute shortage of skilled manpower continues to cripple the industry. The Federation called upon the government to organize skill development programmes across the nation. The industry had lost nearly 400,000 skilled artisans when plunging gold prices had gripped the industry.