Gems and Jewellery Export Promotion Council Chairman Colin Shah has suggested cutting import duty on gold to 4.5 per cent from 12.5 per cent, and on diamond to 2.5 per cent from 7.5 per cent.

Speaking at CII's Gems and jewellery Conference, Shah said that the duty structure is "very high" in the country.

The minister said that suggestions on right-sizing the duty made by industry representatives is under consideration of the Ministry of Finance.

The minister also said that some "aberrations" have happened in the industry which unfortunately have impacted its credibility, particularly when it comes to financing.

He suggested that the industry can play an important role in creating a situation in which lenders get confidence in the sector and participants.

He added that most of the cases that have caused agony to the industry are well known to most of the people in the industry.

By working in partnership with lenders and bankers, the minister said, "We can find solution to the problems of financing that the industry is facing in India."

Further, he said that he will certainly take the issues that have been raised from time to time, particularly on exports, refund of taxes at customs station when goods are being exported, small-packet exports through e-commerce and couriers.

He also suggested the industry to look at self regulation or policy and procedures which should be put in place to ensure orderly behaviour of the industry.

Goyal said the sector, through its consciousness about quality and price competitiveness, has been able to penetrate markets of the US, UAE, Russia, Singapore, and Hong Kong.