The Gem & Jewellery Export Promotion Council (GJEPC) has responded to the Government’s decision to raise gold import duty from 5% to 10% and increase the agri cess from 1% to 5%. Reaffirming its commitment to the principle of ‘Nation First’ as highlighted by Hon’ble Prime Minister Shri Narendra Modi, the Council stated that it has engaged with leading retailers and manufacturers and submitted recommendations to support self-reliance while managing import dependence.
GJEPC has proposed several industry-led measures, including increasing the share of lower carat jewellery such as 14K and 9K to potentially reduce imports by 20–30%, encouraging consumers to exchange old gold for new jewellery, and strengthening the Gold Monetisation Scheme (GMS) to utilise India’s estimated 25,000 tonnes of existing gold stock. The Council has also suggested discouraging investment in gold bars, coins, and bullion, which account for a significant share of imports, along with introducing a dedicated policy framework to support jewellery exporters.
At the same time, GJEPC reiterated its long-standing position that higher import duties do not significantly reduce gold imports, but instead lead to higher domestic prices and can encourage smuggling. The Council also highlighted operational challenges faced by exporters, including increased requirement of bank guarantees of ₹28–30 lakh per kg of duty-free gold sourced through nominated agencies, which is impacting working capital and export competitiveness.
The Council expressed concern that MSME manufacturers, which form around 80% of its membership base, are experiencing significant liquidity pressure due to the policy changes.
GJEPC has urged the Government to initiate continued dialogue with the industry to develop balanced and sustainable policy measures that support both fiscal objectives and export growth.
