The coming Union budget may fare well for the Gems & Jewellery industry as the Union commerce ministry has sought a reduction in the import duty on gold. This has been done with a view to pushing manufacturing and export of the gems and jewellery sector according to reports.

Jewellery retailers and exporters have urged the tariff to be cut and also the goods and services tax on jewellery certification. There has been a steep decline in jewellery sales over 12 months, because of both the sharp increase in gold prices and a slowing of the overall economy. At Rs 39,670 for 10g, gold prices in India have risen 25 per cent in a year.

Recently, gold's price spiked to a whopping Rs 41,000 per 10gm. Not just that even the smuggling of gold has spiked in 2019 and a possible duty cut can help curb the menace and boost the sagging imports, industry insiders suggest. Import duty on gold was increased from 10 to 12.5 percent in the previous Budget.