Budget shines on jewellery sector

Praise for focus on digitalisation, which is expected to drive consumption

Updated - February 02, 2017 03:29 am IST

Published - February 01, 2017 10:57 pm IST - Mumbai

Jewellers on Wednesday hailed the Union Budget, saying the focus on digitalisation is going to give an impetus to the sector and drive consumption.

“Focus on farmers, infrastructure and digital economy will create transparency and will have an overall positive sentiment in the market,” PNG Jewellers chairman and director of the India Bullion and Jewellers Association (IBJA) Saurabh Gadgil said.

He said the government announcement on establishing gold spot exchange was also a positive move and would lead to better price discovery of the yellow metal.

“This move will help in our country’s participation in determining gold price in the international markets. Overall, this is a positive Budget. Moreover, we go with the ‘no news is positive news’ thinking,” he said.

Echoing a similar view, GJEPC Chairman Praveenshankar Pandya said the government’s proposal to extend the Pradhan Mantri Kaushal Kendras to more than 600 districts across the country, from the 60 districts at present, will help create skills for the gems and jewellery sector as well.

All-India Gems and Jewellery Trade Federation chairman Nitin Khandelwal said ‘no new tax proposals’ was a positive for the sector. However, banning all cash transactions above ₹3 lakh beginning April 1 might may not augur well, especially for the gems and jewellery sector, he said.

“Due to the transaction fee on all digital purchases, the demand is likely to be affected.”

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