Jewelery market eyes Budget: Great opportunity to make India a trading hub

- Boolean Bits - Dinesh Parekh

- Will gold be made available to jewelery manufacturers and exporters at competitive rates? Players also watch out for changes in customs duties

The country's jewelery markets recently witnessed a two-way jump in gold and silver prices in the pre-Budget week. The price of precious metals in the world market showed a biased fluctuation and its impact was also seen in the domestic jewelery markets. Apart from this, market sources said that there was a significant rise in the dollar price against the rupee in the currency market, and its impact was also seen on the jewelry market. The price of gold in the world market had touched the level of $2000 per ounce at one stage, but then the price rebounded and was recently seen trading around $2020 to $2025. In the world market, after the global index of the dollar against various major currencies, there was a drop again, besides the yield of the US bond also fell after the rise, due to which the prices of the precious metals in the domestic jewelry markets were seen going higher after the fall. Behind gold, global silver prices also rose after falling. The price of silver in the world market fell below 22 dollars per ounce at one stage but after that the price increased again and recently there were indications that it was talking around 22.90 to 22.95 dollars. At home, the price of gold in Ahmedabad jewelry market was around Rs.64300 to 64500 per 10 grams and silver price per kg. Around Rs.72500 was found. In the Mumbai market, gold prices without GST were trading around Rs.62000 to 62250 and silver prices were around Rs.71300 without GST. Meanwhile, the eyes of the players in the country's jewelery markets are now on the budget to be presented by the Union Finance Minister. There is a market meeting on what changes are made in the budget regarding customs duty, import duty.

According to the World Gold Council, India has the highest demand for gold jewelery globally. In such circumstances, the market experts were also hoping that the government would give a booster dose to this sector through the budget. During the wedding season, such demand increases significantly. In recent years, the demand for lightweight, light weighted jewelery and gem studded jewelery has seen a significant growth in India. Gems and jewelery sector in India has seen significant progress in recent years. The share of this sector in the total GDP of India has been around 7 percent. And the share of this sector in India's total exports has been around 15 to 16 percent. The annual volume in this sector has increased to 78 to 79 billion dollars and the informants were showing the possibility that it will continue to grow by 5 to 6 percent every year. Around 40 to 50 lakh people are getting employment in this sector. The sector needs raw materials at competitive prices. Gift CT is also proving to be a key role for international gold suppliers to supply Indian jewelery manufacturers with raw materials at reasonable prices. If you get gold in the form of a gold loan, you are the smell of gold. Analysts are predicting that India's jewelery products will become more competitive in the world market due to this. Meanwhile, given that the sector is an art-craftsmanship, it is necessary to upgrade the gem artists and jewelers and modernize the sector. Modern machines have also become essential. And it is also necessary to see that customs duty and other taxes will be eased on overseas import of such machines. The Finance Minister's approach to this issue in the budget is being watched. If there is progress in this sector, there is a possibility that India will become the center (hub) of Gems and Jewelery at the global level and this should be kept in mind by the Finance Minister. In order for the entrepreneurs of this sector of the country to increase their footprint in the coastal countries, it is also necessary to see that such entrepreneurs get credit support on lenient terms. The Finance Minister has got a great opportunity to establish the Made in India brand on the global platform and the jewelery market and the diamond market are keeping an eye on how fast the Finance Minister is taking this opportunity. Labgrown diamond sector is also growing rapidly in the country. The prevalence of artificial intelligence is also likely to increase in this field. Meanwhile, as gold smuggling has increased in the country, there is also a debate on whether or not to reduce the customs duty on gold in the budget. However, before the budget, the government has recently increased the import duty on some gold and silver items, which has caused surprise in the market, said the informants.