Import duty hike won't hit jewellery business

The finance minister today increased the import duty on gold and platinum from Rs 200 to Rs 300 per 10 gm, and that on silver from Rs 1,000 per kg to Rs 1,500 per kg. The hikes, however, will not impact the overall fortunes of jewellery business, according to industry players.

Vishal Doshi, group executive director of Shrenuj & Company, feels that since the upward adjustment in duty is very minimal, there will be no major impact on the gold and diamond jewellery industry. The import duty on gold was levied at a time when the price of the yellow metal was ruling between Rs 10,000 and Rs 11,000 per 10 gm, which is currently between Rs 16,000 and Rs 17,000 per 10 gm.

Thus, the Rs 100 increase in import duty will not make much of a difference for the domestic jewellery industry, says Rajiv Popley, director of the Popley Group (Popley & Sons), a manufacturer, trader and exporter of gold and diamond jewellery.