Monday, 10th April 2006 (3693 views)

India has reduced value added norms on gold and silver jewellery, in a move likely to boost exports by 20 to 25 per cent.

Commerce minister Kamel Nath announced the reduction, from seven to 4.5 per cent, at a press conference on Friday 9th April.

Mr Nath said: "Because of a rich tradition of craftsmanship, enterprise and availability of skilled, low cost manpower India has the potential to become an international hub for gems and jewellery."

Mr Nath also announced that the import of precious metal scrap and used jewellery, for melting, refining and re-export will now be permitted under Indian law.

This will help alleviate the problem of unsold jewellery on the foreign market, which can be re-imported, making use of India's large capacity for jewellery-making production.

The move has been warmly received within the industry.

The move comes at a time when gold and silver prices are at a record high, and is believed to have been made so that India can compete in the sector with its Chinese rivals.

 

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