Unified Gold Rate Policy: A New Era for Eastern India's Jewellery Industry

The gold jewellery industry is advocating for a 'One Nation, One Rate' initiative, starting with a unified gold rate for Eastern India in August. Key stakeholders believe this will create a level playing field and curtail illegal imports. Discussions are ongoing to extend this nationwide within six months.

The gold jewellery industry is pushing for a 'One Nation, One Rate' policy, beginning with a standardized rate in Eastern India starting August, according to an official statement.

Samar Kr De, President of the Swarna Silpa Bachao Committee, mentioned that stakeholders are interested in a unified gold rate across the country. 'We will start with a single rate for Bengal and Eastern India by August and have onboarded bullion sellers for this initiative,' De noted.

Saiyam Mehra, Chairman of the All India Gem and Jewellery Domestic Council (GJC), expressed that this initiative aims to provide a level playing field for all stakeholders and prevent undercutting. De added that they plan to extend the 'One Gold Rate' policy nationwide within six months and are in talks with major national jewellery retail chains.

Recently, the industry was surprised by a 9 per cent duty cut. Union Finance Minister Nirmala Sitharaman, in her budget proposals, reduced import duties on gold and silver from 15 per cent to 6 per cent.

Industry experts believe this sharp duty cut will help eliminate illegal imports. 'Gold smuggling is estimated at 100 tonnes out of the total import of around 950 tonnes,' said Sunny Dholakia, a diamond importer.

However, there are concerns about the government's plans regarding the Goods and Services Tax (GST) on gold. The GJC has appealed to the GST Council to reduce the tax rate on jewellery from the current three per cent to one per cent.

(With inputs from agencies.)