Govt. considering SOPs for jewellery exporters | SupportBiz

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Govt. considering SOPs for jewellery exporters

 
In a bid to perk up gold jewellery exporters hit by restrictions imposed on import of the metal to maintain CAD, the government is considering offering them incentives by hiking duty drawback rate to 8 per cent, reports The Hindu Business Line.

Duty drawback is the refund of duties on imported inputs for export items. The government, in the past, has increased it to 6 per cent from 4 per cent. However, the exporters are demanding it to be increased to at least 8 per cent, along with removal of restrictions on sale of gold in the domestic market, said a government official.

Gems and Jewellery Export Promotion Council (GJEPC) Vice Chairman Pankaj Kumar Parekh said, “We should be provided gold on easy terms. We have also asked to take steps to reduce transactions cost for us.”

India exported $39 billion worth various precious gems and jewellery in 2012—13. Jewellery exports are expected to decline by about 20 per cent in the current fiscal due to limited availability of gold inventory in the domestic market following the government’s and the Reserve Bank’s steps to curb the gold imports, which have averaged 152 tonnes in April and May, resulting in foreign exchange outgo of about $15 billion.

Gold and silver imports in April jumped by 138 per cent to $7.5 billion, as against $3.1 billion in the year ago period. Due to high gold imports, the country’s trade deficit in April widened to $17.8 billion year on year.