The Union budget 2014-15 offered a hint of ‘Modi effect’ for Gujarat with some provisions targeting the State’s industries. However, it generated a mixed response from industry persons here who had pinned their hopes on more radical measures by the Narendra Modi government.
With an eye on Surat’s diamond industry, the Centre has fully exempted pre-forms of precious and semi-precious stones from basic customs duty to encourage exports. On the other hand, it has marginally increased the duty from 2 to 2.5 per cent on semi-processed, half-cut or broken diamonds, cut and polished diamonds and coloured gemstones.
“This move will benefit the diamond industry and rein in black marketing. Earlier, there was no duty on polished diamonds. So, people exported them and imported them back in order to avail of bank facilities. This kind of misuse will be under check with the hike in duty,” Surat Diamond Association president Dinesh Navadia told The Hindu .
Small diamond traders welcomed the move, seen as an incentive for the local diamond markets in Surat. However, the gold jewellery industry was upset with the Centre for the lack of any thrust for the sluggish sector.
Kandla port developmentIn other measures, the budget envisages the development of a special economic zone at Kandla port and setting up of textile mega clusters in Surat and Kutch districts, among others.
