Union Budget 2022: TN jewellers welcome slash in customs duty on diamonds, but say it provides relief to very few

The jewellers expected more of the budget, and are disappointed that no concession has been made for gold imports

Published - February 02, 2022 02:50 pm IST - CHENNAI

Photograph used for representational purposes only

Photograph used for representational purposes only

The reduction in import duty on cut and polished diamonds and gemstones in the Union Budget 2022 has come as a small relief to the jewellery industry. However, the industry had more expectations of the Budget.

The customs duty on polished diamonds and gemstones has been reduced from the existing 7.5% to 5%, and sawn or rough diamonds would not attract any duty at all. While this is a welcome move, it will only benefit a relatively small section of traders, jewellers noted.

“It will be more of a benefit to exporters -- polished diamonds contribute to less trade in the domestic market,” said N. Ananthapadmanabhan, former chairman, All India Gem and Jewellery Domestic Council.

The announcement for a simplified regulatory framework to encourage export of jewellery through e-commerce by June was a welcome move. This would open new avenues to jewellers. “We also need to wait and see the impact of digital currency set to be introduced for gold investments,” he added.

The jewellery industry was expecting a cut in import duty on gold by at least 2% or 3% to boost sales. Though there was a cut earlier, there was not much benefit, as agriculture infrastructure and development cess was added to it, jewellers said.

The Jewellers and Diamond Traders’ Association-Madras had recently represented to the Union Finance Minister seeking to announce the jewellery-making industry as a cottage industry and also to establish a jewel park in Chennai, where manufacturers can set up factories and create more employment opportunities.

Jayanthilal Challani, president of the association, said “We also expected announcements to popularise the gold monetisation scheme that allows people to deposit idle gold in banks. Though an announcement was made, the scheme did not take off as expected. Gold imports would have become fewer, and prices too, would have dropped. Jewellers with large customer bases could also have been used to popularise for the scheme,” he said.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.