Believing the negative comments for the gems and jewellery sector by the government since a few months, the gems and jewellery sector was very doubtful about the Budget 2013. But this sector finally heaved a sigh of relief as there is no duty hike in gold or jewellery. India, the world's largest consumer of gold jewellery, is estimated to have imported 750 tonnes of gold in 2012 and an additional 200 tonnes was believed to have been imported through unofficial channel, taking the total to almost 2011 level of 969 tonnes. Thus, it is an important emerging sector in the Indian economy. Ranked amongst the fastest growing sectors, it is also a leading sector for foreign exchange generation. %% The Finance Minister, P Chidambaram has recognized the continued representations by the sector. Bachhraj Bamalwa, Chairman, All India Gems & Jewellery Trade Federation (GJF) said that the industry is overall happy with the Union Budget 2013-14. "There is nothing substantial for the gem and jewellery industry that the Honorable Finance Minister has emphasised upon in his budget speech for the Union Budget 2013-14. There is a big relief in the industry that the import duty has not been increased but we expect it to reduce further in the coming days. He has made efforts by announcing the instruments to protect savings from inflation such as inflation index bonds and inflation index national certificates which may make people shy away from investing in gold. But, we believe it is the right path," he said. %% It is however noteworthy to mention that GJF's hard work of the past six months has paid off as the government has taken into consideration two of its important suggestions which are as following:%% 1) Recommendation of imposing Commodity Transaction Tax $$ 2) The acceptance of the suggestion regarding increasing the duty free gold limit to Rs. 1 lakh for female passengers and Rs 50,000/- for male passengers. $$ Highlighting in detail the encouraging facet of the budget, Dr. Suresh Surana Founder, RSM Astute Consulting Group affirmed, “Basic Custom Duty on pre-forms of precious and semi-precious stones (other than diamonds) reduced from 10 to two per cent would benefit the industry. Concessional rate of tax of 15 per cent on dividend received from its foreign subsidiary proposed to continue for one more year is a positive step. Corresponding amendment to remove cascading effect on subsequent dividend distributed by Indian Company is likely to help gems and jewellery industry in the country. Modified provisions of GAAR will come into effect from 01.04.2016.” %%

The lingering disappointment is that some major recommendations were missed especially after the government set up a special task force to learn the industry's concerns. Also, after Shri Siddharth, Joint Secretary, Ministry of Commerce and Industry, emphasised that the ‘Indian government gives utmost importance to this sector for its contribution of being one of the highest employment-providing segments and foreign exchange earner’, the budget didn't address recommendations of a duty-free import quota for cut and polished diamonds based on 15 per cent of a company's previous year’s exports which would encourage exports, and steps towards a Presumptive Taxation regime. %% Meanwhile, Vipul Shah, Chairman, GJEPC states, "“We had also suggested that while the industry would like a Presumptive Taxation regime in the long run, it would request the Finance Ministry to start by reducing the net profit to 2.5 per cent of turnover instead of six per cent for computation of income tax, as mandated under the Benign Assessment Procedure (BAP). The Finance Ministry has not considered this and we are hugely disappointed.” He further added, “ The Union Budget for 2013-14 is neutral for us, as nothing extensive has been stressed upon for the gem and jewellery sector. The only good news is that the import duty of the semi-polished coloured stones (pre-forms) is reduced to two per cent from 10 per cent. In the past where only the finished or polished coloured stones had an import duty of two per cent, the reduction of import duty on semi-polished coloured stones (pre-forms) is a respite. We are expecting some reformative measures in the Import Export Policy that will be revealed in one month’s time. We have already discussed a few key issues with the Finance Minister and we are hopeful that he will consider them in the Import Export Policy.” %% In the Union Budget 2013-14, some expectations seem to have been missed. For India, the world’s largest gold consumer, the budget did not invite further rise in import duty on gold, and left the gem and jewellery industry largely appreciative of the budget, although it seeks a reduction in the present duty rate. In January 2013, gold import duty had been raised from four to six per cent, to control the country’s current account deficit, creating worry over low demand and gold smuggling, but the present budget signals some hope. Also, duty on preforms of precious and semi-precious stones reduced from 10 to two per cent, is just to correct anomaly as there is no duty on rough imports and two per cent duty on polished imports. %% While the industry concerns and hopes still linger, let’s hope the budget is a stepping stone to achieving goals.%%

Believing the negative comments for the gems and jewellery sector by the government since a few months, the gems and jewellery sector was very doubtful about the Budget 2013. But this sector finally heaved a sigh of relief as there is no duty hike in gold or jewellery. India, the world's largest consumer of gold jewellery, is estimated to have imported 750 tonnes of gold in 2012 and an additional 200 tonnes was believed to have been imported through unofficial channel, taking the total to almost 2011 level of 969 tonnes. Thus, it is an important emerging sector in the Indian economy. Ranked amongst the fastest growing sectors, it is also a leading sector for foreign exchange generation. %% The Finance Minister, P Chidambaram has recognized the continued representations by the sector. Bachhraj Bamalwa, Chairman, All India Gems & Jewellery Trade Federation (GJF) said that the industry is overall happy with the Union Budget 2013-14. "There is nothing substantial for the gem and jewellery industry that the Honorable Finance Minister has emphasised upon in his budget speech for the Union Budget 2013-14. There is a big relief in the industry that the import duty has not been increased but we expect it to reduce further in the coming days. He has made efforts by announcing the instruments to protect savings from inflation such as inflation index bonds and inflation index national certificates which may make people shy away from investing in gold. But, we believe it is the right path," he said. %% It is however noteworthy to mention that GJF's hard work of the past six months has paid off as the government has taken into consideration two of its important suggestions which are as following:%% 1) Recommendation of imposing Commodity Transaction Tax $$ 2) The acceptance of the suggestion regarding increasing the duty free gold limit to Rs. 1 lakh for female passengers and Rs 50,000/- for male passengers. $$ Highlighting in detail the encouraging facet of the budget, Dr. Suresh Surana Founder, RSM Astute Consulting Group affirmed, “Basic Custom Duty on pre-forms of precious and semi-precious stones (other than diamonds) reduced from 10 to two per cent would benefit the industry. Concessional rate of tax of 15 per cent on dividend received from its foreign subsidiary proposed to continue for one more year is a positive step. Corresponding amendment to remove cascading effect on subsequent dividend distributed by Indian Company is likely to help gems and jewellery industry in the country. Modified provisions of GAAR will come into effect from 01.04.2016.” %%

The lingering disappointment is that some major recommendations were missed especially after the government set up a special task force to learn the industry's concerns. Also, after Shri Siddharth, Joint Secretary, Ministry of Commerce and Industry, emphasised that the ‘Indian government gives utmost importance to this sector for its contribution of being one of the highest employment-providing segments and foreign exchange earner’, the budget didn't address recommendations of a duty-free import quota for cut and polished diamonds based on 15 per cent of a company's previous year’s exports which would encourage exports, and steps towards a Presumptive Taxation regime. %% Meanwhile, Vipul Shah, Chairman, GJEPC states, "“We had also suggested that while the industry would like a Presumptive Taxation regime in the long run, it would request the Finance Ministry to start by reducing the net profit to 2.5 per cent of turnover instead of six per cent for computation of income tax, as mandated under the Benign Assessment Procedure (BAP). The Finance Ministry has not considered this and we are hugely disappointed.” He further added, “ The Union Budget for 2013-14 is neutral for us, as nothing extensive has been stressed upon for the gem and jewellery sector. The only good news is that the import duty of the semi-polished coloured stones (pre-forms) is reduced to two per cent from 10 per cent. In the past where only the finished or polished coloured stones had an import duty of two per cent, the reduction of import duty on semi-polished coloured stones (pre-forms) is a respite. We are expecting some reformative measures in the Import Export Policy that will be revealed in one month’s time. We have already discussed a few key issues with the Finance Minister and we are hopeful that he will consider them in the Import Export Policy.” %% In the Union Budget 2013-14, some expectations seem to have been missed. For India, the world’s largest gold consumer, the budget did not invite further rise in import duty on gold, and left the gem and jewellery industry largely appreciative of the budget, although it seeks a reduction in the present duty rate. In January 2013, gold import duty had been raised from four to six per cent, to control the country’s current account deficit, creating worry over low demand and gold smuggling, but the present budget signals some hope. Also, duty on preforms of precious and semi-precious stones reduced from 10 to two per cent, is just to correct anomaly as there is no duty on rough imports and two per cent duty on polished imports. %% While the industry concerns and hopes still linger, let’s hope the budget is a stepping stone to achieving goals.%%

Believing the negative comments for the gems and jewellery sector by the government since a few months, the gems and jewellery sector was very doubtful about the Budget 2013. But this sector finally heaved a sigh of relief as there is no duty hike in gold or jewellery. India, the world's largest consumer of gold jewellery, is estimated to have imported 750 tonnes of gold in 2012 and an additional 200 tonnes was believed to have been imported through unofficial channel, taking the total to almost 2011 level of 969 tonnes. Thus, it is an important emerging sector in the Indian economy. Ranked amongst the fastest growing sectors, it is also a leading sector for foreign exchange generation. %% The Finance Minister, P Chidambaram has recognized the continued representations by the sector. Bachhraj Bamalwa, Chairman, All India Gems & Jewellery Trade Federation (GJF) said that the industry is overall happy with the Union Budget 2013-14. "There is nothing substantial for the gem and jewellery industry that the Honorable Finance Minister has emphasised upon in his budget speech for the Union Budget 2013-14. There is a big relief in the industry that the import duty has not been increased but we expect it to reduce further in the coming days. He has made efforts by announcing the instruments to protect savings from inflation such as inflation index bonds and inflation index national certificates which may make people shy away from investing in gold. But, we believe it is the right path," he said. %% It is however noteworthy to mention that GJF's hard work of the past six months has paid off as the government has taken into consideration two of its important suggestions which are as following:%% 1) Recommendation of imposing Commodity Transaction Tax $$ 2) The acceptance of the suggestion regarding increasing the duty free gold limit to Rs. 1 lakh for female passengers and Rs 50,000/- for male passengers. $$ Highlighting in detail the encouraging facet of the budget, Dr. Suresh Surana Founder, RSM Astute Consulting Group affirmed, “Basic Custom Duty on pre-forms of precious and semi-precious stones (other than diamonds) reduced from 10 to two per cent would benefit the industry. Concessional rate of tax of 15 per cent on dividend received from its foreign subsidiary proposed to continue for one more year is a positive step. Corresponding amendment to remove cascading effect on subsequent dividend distributed by Indian Company is likely to help gems and jewellery industry in the country. Modified provisions of GAAR will come into effect from 01.04.2016.” %%

The lingering disappointment is that some major recommendations were missed especially after the government set up a special task force to learn the industry's concerns. Also, after Shri Siddharth, Joint Secretary, Ministry of Commerce and Industry, emphasised that the ‘Indian government gives utmost importance to this sector for its contribution of being one of the highest employment-providing segments and foreign exchange earner’, the budget didn't address recommendations of a duty-free import quota for cut and polished diamonds based on 15 per cent of a company's previous year’s exports which would encourage exports, and steps towards a Presumptive Taxation regime. %% Meanwhile, Vipul Shah, Chairman, GJEPC states, "“We had also suggested that while the industry would like a Presumptive Taxation regime in the long run, it would request the Finance Ministry to start by reducing the net profit to 2.5 per cent of turnover instead of six per cent for computation of income tax, as mandated under the Benign Assessment Procedure (BAP). The Finance Ministry has not considered this and we are hugely disappointed.” He further added, “ The Union Budget for 2013-14 is neutral for us, as nothing extensive has been stressed upon for the gem and jewellery sector. The only good news is that the import duty of the semi-polished coloured stones (pre-forms) is reduced to two per cent from 10 per cent. In the past where only the finished or polished coloured stones had an import duty of two per cent, the reduction of import duty on semi-polished coloured stones (pre-forms) is a respite. We are expecting some reformative measures in the Import Export Policy that will be revealed in one month’s time. We have already discussed a few key issues with the Finance Minister and we are hopeful that he will consider them in the Import Export Policy.” %% In the Union Budget 2013-14, some expectations seem to have been missed. For India, the world’s largest gold consumer, the budget did not invite further rise in import duty on gold, and left the gem and jewellery industry largely appreciative of the budget, although it seeks a reduction in the present duty rate. In January 2013, gold import duty had been raised from four to six per cent, to control the country’s current account deficit, creating worry over low demand and gold smuggling, but the present budget signals some hope. Also, duty on preforms of precious and semi-precious stones reduced from 10 to two per cent, is just to correct anomaly as there is no duty on rough imports and two per cent duty on polished imports. %% While the industry concerns and hopes still linger, let’s hope the budget is a stepping stone to achieving goals.%%